Nizam Hamid: Is 2017 the year smart beta becomes mainstream?

'Tailored exposure' for investors

clock • 2 min read

If smart beta ETFs can help investors navigate their way through the ongoing tangle of unfolding political and socioeconomic events then, says Nizam Hamid, this could prove a defining year for the sector

Smart beta is finding itself increasingly front and centre of the passive universe. The sector's annual growth rate has overtaken the wider passive market and this looks set to be sustained for some time as the investment landscape transforms to accommodate shifts - both political and in terms of monetary policy. In Europe, last year, smart beta exchange-traded fund (ETF) assets grew 33% while the broad ETF market grew 14%. If we look at the US market, investors have predominantly traded the Trump election and subsequent rally to record highs via passive strategies mainly focused on pure...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read