Morningstar Study Analyzes Strategic-Beta Fund Performance

A study conducted by Morningstar, summarized in a recent article by the firm’s Alex Bryan, CFA, attempts to determine whether investors can duplicate strategic-beta fund performance with a combination of market cap-weighted indexes. The study compares the performance of a group of strategic beta funds to a “replicating portfolio of six style benchmarks for its relevant universe.” The purpose of the study, writes Bryan, is not necessarily to suggest that investors should replace strategic beta… Read More

Asness and Arnott Talk Market Timing, Smart Beta and Behavioral Biases

Maybe not always. At least that was the upshot of a debate between Cliff Asness of AQR and Rob Arnott of Research Affiliates, panelists at the recent Morningstar conference in Chicago. Although they debated various topics, they seemed to agree that value stocks deserve attention when they’re cheap. According to Asness, founder and managing principal at AQR, “Timing the market is hard and we call it a sin, but we recommend that investors sin a… Read More