A recent article in CFA Institute suggests ways to combine alpha and beta factor strategies to create a “simple and clean equity portfolio” that offsets some of the “innate human…
Tag: smart beta
Cost of Smart Beta Leads to Distorted Investor Expectations
An article in CFA Institute reports that, although academic research has touted the benefits of “smart-beta,” investing, this research “largely ignores transaction costs that reduce returns significantly.” The article offers…
Warnings About Smart Beta From Smart-Beta Index Provider
A white paper on smart-beta investing released this week by “veteran quant” Eric Shirbini of ERI Scientific Beta says that “second-order risks and exposures aren’t being sufficiently accounted for by…
Rob Arnott Steers Clear of FAANG Stocks
A recent Forbes article offers a recap of an interview with Research Affiliates’ founder and CEO Rob Arnott, including his insights regarding the market and “smart beta” investing. Here are…
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:…
Smart Beta Investing May Not Be So Smart
A new study has raised questions as to whether smart beta mutual funds, which are on course to reach $1 trillion in assets by the end of 2017, are as…
Indexing Beats Smart-Beta Track Record
Many smart-beta funds– which develop portfolios focusing on various factors such as low volatility, value, or momentum– have underperformed the market, especially after accounting for fees and expenses. This according…
Rob Arnott Questions Use of the Smart Beta Strategies He Pioneered
Rob Arnott, founder of Research Affiliates LLC, published a paper earlier this month in which he questions the use of some “smart beta” investment strategies he pioneered, according to a…
Simple is Smart in Smart-Beta Investing
Using a database of over 20 countries, a team of British academics tested the five most popular smart beta factors to see whether they would have proven successful over time.…
Rob Arnott Says Clock is Ticking on Smart Beta ETFs
A smart-beta pioneer, Rob Arnott of Research Affiliates warns that these investment vehicles are in a bubble, says an article in last week’s Bloomberg. Smart-beta ETFs organize securities based on…