Invesco PowerShares Managing Director Dan Draper and Vice President of ETF Product Management John Feyerer joined ETF Trends publisher Tom Lydon to discuss increased institutional adoption of smart beta exchange traded funds.
PowerShares, the fourth-largest U.S. issuer of ETFs, recently revealed the results of its second annual study titled The Evolution of Smart Beta ETFs, conducted in conjunction with Market Strategies International (MSI). [Smart Beta ETFs Keep Gaining Traction]
“What we’ve done at Invesco PowerShares is really position and thought about ETFs as a disruptive technology,” said Draper. “Now we take it alongside MSI to the marketplace and test that theory. What we’re finding is not only on ETF adoption, but specifically within smart beta, it continues to grow in awareness and adoption.”
The PowerShares/MSI study, which was published last month, found that smart beta ETFs accounted for 17% of US net ETF inflows in 2014, despite representing less than 11% of total assets. Today there are more than 350 smart beta ETFs available in the U.S. comprising over $230 billion in AUM, up from just 212 products and $64.8 billion in 2010.