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.

\text{Free cash flow yield}_{t} = \sum\limits_{i=1}^{n} (w_{i,t-1} \times \frac{FCF_{i,t,RepCCY}}{V_{i,t-1,RepCCY}}) |

where:

FCF_{i,t,RepCCY} denotes the free cash flow of constituent *i* at time *t* expressed in the index reporting currency.

V_{i,t-1,RepCCY} denotes constituent *i*'s fair value estimate at time *t-1* expressed in the index reporting currency.

w_{i,t-1} denotes the weight of constituent *i* at time *t-1.*