Watch out BGI, because Claymore Investments has just launched an ETF that will be traded on the Toronto Stock Exchange. The FTSE RAFI Canadian Index Fund will the first to be launched in Canada, according to the National Post.

Since BGI is the leader when it comes to market-cap style indexes, Claymore has decided to take another approach.

This so-called "non-market cap approach" weights indexes using four factors: dividends, cash flow, revenue and book value.

The ETF will include Canadian stocks that are members of the FTSE RAFI Global ex US 1000 Index.

The largest companies in this index are: Royal Bank of Canada, BCE Inc., Alcan, Bank of Nova Scotia, Manulife Financial, Bank of Montreal, TD Bank, CIBC, Sun Life, and Encana Corp.

The advantage of the new index is the fact that investors will now have an enhanced passive management strategy with low turnover costs. Claymore's ETFs, like BGI's, will provide a low-cost method of getting market-like returns.

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