Although the number of smart beta ETFs is growing and some issuers, such as SSgA, First Trust and PowerShares, already offer expansive suites of such products, the U.S. trails Europe in adaptation of non-cap weighted fare.

“Europe is ahead of US institutional investors in adoption, allocation and measurement of advanced beta strategies with 25 percent of European respondents allocating 20 percent or more of equities in their portfolio to advanced beta as compared to four percent for North American respondents,” according to SSgA.

SSgA noted that 40% of investors using advanced beta strategies are using low volatility and low valuation products either combined or separately. [Loving Low Vol ETFs Again]

State Street offer low volatility products including the SPDR Russell 1000 Low Volatility ETF (NYSEArca: LGLV) and the SPDR Russell 2000 Low Volatility ETF (NYSEArca: SMLV).

ETF Trends editorial team contributed to this post.