Fundamental Indexation has also been effective in back-tested results both in Europe and Asia. Return statistics from 1987 through 2005 suggest that fundamentally- weighted indexes have outperformed capitalization-weighted indexes in Greece, Ireland, France, Switzerland, Germany and Denmark by over 200 basis points per annum. In Japan the out performance has been greater than 300 basis points a year. In emerging markets, the technique has shown even greater excess returns over capitalization- weighted indexes. Moreover, these higher returns have been achieved with lower volatility, thus producing higher Sharpe ratios . .
