The fund aims for long-term capital growth by investing in equity securities of US companies in such a way that maximum diversification of its investments is achieved. Eligible securities are first subjected to size and liquidity rules. Index screens are then utilized to remove those involved in the production of controversial weapons, tobacco, or coal, and those engaged in human rights violations, environmental damage, corruption, or other serious ethical violations. Next, the index uses a mathematical model known as the Diversification Ratio to minimize the covariance between its constituents, resulting in a portfolio of stocks with low or negative correlations to each other.
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