FYX uses fundamental and technical factors to select and weight holdings in an attempt to beat the small-cap market. The creation of the underlying index starts by removing stocks from the NASDAQ US 700 Small Cap Index that do not trade on an eligible exchange, are duplicate stocks, and do not meet liquidity screens. All remaining securities are grouped into growth or value buckets. Those eligible are scored individually and the top 525 stocks are selected for inclusion. Based on their score, the selected stocks are subsequently split into quintiles and are equally weighted within each quintile. Those in the higher scoring quintiles then receive a greater weight in the Index. All in all, FYX takes on more market risk with its approach, so weigh the extra risk exposure when comparing the latest returns. The index is reconstituted and rebalanced quarterly. Note: On April 8, 2016 the fund switched underlying indexes from the old Defined index to the current Nasdaq version.