Hoshang Daroga: Not all ETFs are created equal

The smart beta generation

clock • 4 min read

With such a large number of smart beta ETFs options now available, writes Hoshang Daroga, it is important to have a selection process and objective clearly defined before using them to build portfolios

Over the past decade, exchange-traded funds (ETFs) have come a long way. Originally just a simple way to track a market, they can now track a broad range of indices using alternative - non-capitalisation - weighting schemes.  More active in nature, this next generation of funds are more popularly known as ‘smart beta ETFs'. Smart beta is a broad term used to describe ETFs that track indices in which securities are not weighted based on market capitalisation.  Instead the weighting scheme is based on certain characteristics known as ‘factors', such as size, value, quality, volatility, mom...

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

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Watch Professional Adviser's Working Lunch with Baillie Gifford - Emerging Future: Rethinking the World's Growth Engine

Catch up on the discussion

Professional Adviser
clock 13 October 2026 • 1 min read
Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read