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

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read