The company said the funds are based upon the Dow Jones RBP Family of Directional Indexes, and the components of each index are determined using a methodology called Required Business Performance (RBP).
Developed by Transparent Value, RBP measures the company business performance that is implied in the price of a stock. Once the RBP has been calculated, a probability is assigned as to the likelihood that the management of a given company can deliver that RBP. The funds use a management strategy designed to track the total return performance of their respective Dow Jones Index, according to the firm.
Transparent Value’s initial three funds are:
- Transparent Value Dow Jones RBP U.S. Large-Cap Aggressive Index Fund,
- Transparent Value Dow Jones RBP U.S. Large-Cap Defensive Index Fund, and
- Transparent Value Dow Jones RBP U.S. Large-Cap Market Index Fund.