ETF Trends
ETF Trends

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.

“As more and more strategies come to the market, more people pay attention,” Davidow added. “They’ve grown in popularity.”

Charles Schwab provides more information on smart-beta ETFs through its Schwab Center for Financial Research, which also includes tools and data for investors on a broad range of investment topics like the markets, economy, retirement, portfolio management and investment strategies.

Watch the video below to see the full interview with Tony Davidow.

To view past video interviews, visit our video section.