As advisors refine the way they invest and the way they structure client portfolios, there will be a greater need for investor education in the evolving exchange traded fund universe.
ETF Trends’ Tom Lydon recently sat down with Ken O’Keeffe, Managing Director of Investable Products at Russell Investments, to discuss changes in indexing from traditional market-capitalization to so-called smart-beta and the greater need to educate investors on best practices when utilizing the strategies.
“There’s more and more tools that financial advisors can use to help better manage their client’s portfolios, but as that new tool comes out, well somebody’s got to tell you how it works,” O’Keeffe said.
For instance, smart-beta, intelligent, factor-based indexing has become one of the next big things in the ETF industry.
“The smart-beta phenomenon is just an evolution of where we’ve been, and you’re going to see more of that evolution happening,” O’Keeffe said.
Advisors will have to understand how the new strategies can work within their existing portfolios.
“They’re all complimentary to existing portfolios, both active and passive, so it’s not like you have to totally redo your portfolio,” O’Keeffe added.
Watch the video below to see the full interview with Ken O’Keeffe.
To view past video interviews, visit our video section.