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.