Invesco PowerShares is also a forerunner in the fundamental ETF business. [PowerShares Fundamentally Weighted ETFs Hit $5 Billion]
On the demand side, investors are embracing the new breed of intelligent, smart-beta or fundamental index ETFs as the funds outperform traditional benchmark indices. Almost three of five advisors on the Schwab platform are using fundamentally weighted ETFs, and one in five plan to increase usage. [Alternative Weighted Index ETFs Attract Heavy Inflows: Schwab]
“We’re always trying to find new ways to enhance how we invest for clients. Factors do that,” Mark Carver, investment strategist at iShares, said in the article. “As new ideas are vetted, more people are starting to put them into practice.”
For more information on the ETF indexing methodologies, visit our indexing category.
Max Chen contributed to this article.