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# Free cash flow yield

Free cash flow yield is computed as the ratio of free cash flow to the initial value of the asset. It ignores capital gains. The index-level yield is calculated as the weighted average using the fair value of each constituent.

where:

$//$ denotes the free cash flow of constituent i at time t expressed in the index reporting currency.
$//$ denotes constituent i's fair value estimate at time t-1 expressed in the index reporting currency.
$//$ denotes the weight of constituent i at time t-1.

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