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:…