Trying to build a better index fund

(Fortune Magazine) -- For the most part, index funds are ideal investments. But they do have a potential flaw: Because the indexes they track weight stocks on market value (share price times number of shares), they end up holding lots of more expensive stocks - the ones most vulnerable to sudden drops. Index purists insist price is the only true measure of a stock's value.

But now investors who disagree have some alternatives. The past couple of years have seen the launch of a variety of exchange-traded funds (ETFs) based on "fundamental" indexes that ignore market value and instead weight companies on the basis of dividends, earnings and other measures; ten significant ones are listed below. Will these fundamental index funds outperform their traditional rivals? So far the results are mixed, but it's far too soon to tell.