Analysts at AB Bernstein have written a report highlighting the majority of inflows into smart-beta since 2015 have been captured by strategies with lower total expense ratios.
In the report The only way is up? Smart-beta ETF trends over the past 6 months seen by Professional Adviser's sister publication Investment Week, the analysts found smart-beta ETFs with an expense ratio below 0.30% have captured more than 80% of the flows between 1 January 2015 and 1 August 2017. Furthermore, the analysts pointed to the significant cost advantage of smart-beta ETFs over actively managed mutual funds as a crucial "structural" driver of demand. Multi-managers turn to ETFs in Q2 Alla Harmsworth, head of European quantitative strategy at Bernstein Investment Research, ...
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