Investing Insights Regarding Smart Beta Strategies

At this month’s 2017 Morningstar ETF Conference, Alex Bryan interviewed Chris Brightman, the chief investment officer of Research Affiliates, to discuss concerns regarding smart beta products. Here are some highlights: Bryan points out that while data provided by Research Affiliates shows strong back-tested performance for some smart-beta strategies, the “live” record of many of these products has been weak. Brightman clarified that his findings are not restricted to smart-beta strategies. “If we look across the… Read More

Is Smart-Beta Investing Smart?

Smart-beta investing is getting a lot of attention and Chris Brightman, chief investment officer of Research Affiliates, has covered a lot of ground in this territory. However, while this investment methodology has been gaining popularity, Research Affiliates is warning investors that a crash may be coming. In a recent interview with Barron’s, Brightman shares his thoughts and concerns on the subject. Unlike traditional market-weighted indices, smart-beta investing uses measures such as volatility, valuation and earnings… Read More

Brightman: EM Stocks Will Most Likely Trump US Stocks Over Next Ten Years

Chris Brightman CIO of Research Affiliates explains how his firms uses stock market valuations to project long term future returns. Brightman says the best returns over the next 10 years will most likely come from emerging market equities, places like China, Russia and Brazil, where valuations look much more attractive than US stocks. Brightman utilizes the Shiller P/E, which uses ten years’ worth of earnings as the denominator, in order to predict future returns. Many… Read More