Smart beta is not a single strategy but a range of custom-made options for investors to pick from and so, says Nizam Hamid, transparency and education are paramount in identifying the right approaches
Exchange-traded funds (ETFs) are gaining a momentum in Europe that shows few signs of slowing any time soon. Not the least in this is the smart beta sector, which according to Morningstar represented around a fifth of the $4.1 trillion (£3.2 trillion) global ETF market at 31 July 2017. Despite smart beta's growing popularity, however, the nuances present within the different strategies warrant a closer look. First, smart beta is not a single strategy but an all-encompassing term to describe a multitude of strategies ranging from simple to complex. Second, smart beta strategies are rul...
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