As the exchange traded fund space grows, many observers thought active management would be the next step, but the industry is finding a middle ground through the so-called smart-beta segment.
ETF Trends’ Tom Lydon sat down with Anthony B. Davidow, CIMA, Vice President of Alternative Beta & Asset Allocation Strategist at Schwab Center for Financial Research, in Washington, D.C. at the Charles Schwab IMPACT 2013 conference to discuss the expanding number of smart-beta, index-based ETFs.
“We argued ‘smart-beta’ or ‘alternative-beta’ strategies capture the positive attributes of the traditional market-cap strategies, and a lot of the benefits you get with active management,” Davidow said.
Smart-beta, index-based ETFs are growing in popularity, with more retail investors using the investment tools the augment their portfolios.