The fund is passively managed to invest in all Canadian stocks included in the FTSE RAFI Developed ex US 1000 Index. The parent index includes fundamentally selected large- and midcap stocks. To weight eligible securities, the index also uses a fundamentally driven methodology that equally factors each companys total cash dividends, free cash flow, total sales and book value. Aside from replication, CRQ may also use a sampling strategy to track its index, which is rebalanced annually.