Practical analysis for investment professionals

Smart Beta


Best of 2016: Active Management Fights Back

Mark Harrison, CFA, provides a list of the most popular articles of 2016 from CFA Institute's Financial Analysts Journal and CFA Digest.

Will Smart Beta Be the Next Industry Disruption?

It is too early to say whether smart beta can deliver disruptive innovation to the investment world. But it already appears to be chipping away at parts of the active management product space.

Where’s the Beef?! Is Your Low-Fee Smart Beta Product Ripping You Off?

So what do hamburgers and price per pound have to do with equity-oriented long-only smart beta products? A lot more than you think.

Five Pieces of Conventional Wisdom That Make Smart Investors Look Dumb

Conventional wisdom is quite often wrong and misapprehensions can easily prevail, cemented perhaps by groupthink tendencies intrinsic to peer-influenced media.

Investors Need to Understand the Risks of Smart Beta

The low-yield environment has many investors seeking new sources of outperformance. One development has been the growth of so-called smart beta investments, a $400 billion ETF market with a strong flow of funds from both institutions and retail investors. But are such funds really “smart” and do they truly have the potential to boost performance?

Poll: Is Smart Beta a Passing Fad?

Some argue that smart beta products provide investors with an active approach to passive investing, whereas others believe that it is simply a catchall marketing term that describes any quantitative, rules-based investment strategy that can be formed into an index and sold through mutual funds or exchange-traded funds.

Which Beta is Smart?

As new "smart beta" strategies become more popular, how can investors choose among hedge fund beta, alternative beta, liquid alternative beta, exotic beta, smart beta, scientific beta, and the many others that are increasingly available?

Checking in on the Chilling Cohort of Negative Enterprise Value Stocks

The author revisits the historical performance of negative enterprise value stocks.

Smart Beta Investing: Just a Marketing Story?

Smart beta is an impressive investment branding story. The name neatly encapsulates the idea of beating conventional indices consistently but with little effort and much lower costs. Intellectually seductive, it conveys the concept of market exposure that avoids the costs and behavioral failures of active managers.

Can Passivity Be Enhanced? Why Smart Beta Strategies Are Suddenly in Vogue

Smart beta equity indices are no longer an exotic curiosity. Lionel Martellini, Professor of Finance at EDHEC Business School, offers a comprehensive overview of emerging smart beta strategies.



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