The factors can be implemented to craft customized advanced-beta indices that go beyond traditional market capitalization-weighted indexing. For instance, Mazza pointed to SSgA’s recently launched suite of “Quality Mix” ETFs, including broad market ETFs like the SPDR MSCI World Quality Mix ETF (NYSEArca: QWLD), SPDR MSCI EAFE Quality Mix ETF (NYSEArca: QEFA) and SPDR MSCI Emerging Markets Quality Mix ETF (NYSEArca: QEMM). [A Quality Cocktail With This New ETF]
Additionally, the provider launched a country-specific ETFs with the quality-factor, including the SPDR MSCI Australia Quality Mix ETF (NYSEArca: QAUS), SPDR MSCI Canada Quality Mix ETF (NYSEArca: QCAN), SPDR MSCI Germany Quality Mix ETF (NYSEArca: QDEU), SPDR MSCI Japan Quality Mix ETF (NYSEArca: QJPN), SPDR MSCI Spain Quality Mix ETF (NYSEArca: QESP) and SPDR MSCI United Kingdom Quality Mix ETF (NYSEArca: QGBR). [State Street Takes Quality Approach to Country ETFs]
Melas points out that the quality mix methodology provides three key benefits: The index emphasizes quality, value and low volatility stocks that have historically outperformed the market over the long-term; provides a more equal weight approach to diminish concentration; and creates broad market exposure and diversification.
For more information on smart-beta indices, visit our indexing category.
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