Michael O'Higgins is a Miami fund manager. Some years ago, he devised a yield-based passive investing system for the Dow Jones Industrial Average. It has generated outstanding results.
Investor Chronicle's 'Dogs of the FT 30' borrows from this system. One reason for looking at a system for the UK using the FT 30 – an index that is normally little used today – is the similarity between the FT 30 and the Dow 30. Both are indexes with 30 constituents, with constituents that are big blue chips (or former blue chips). They are changed infrequently. And the indexes themselves are averages of share prices rather than market capitalisations.