Of institutional investors surveyed by Russell with more than $100 billion in assets, 88% “have evaluated smart beta or plan to do so in the next 18 months; 77% of respondents with assets between $1 billion and $10 billion, and 50% of those with assets under $1 billion responded similarly,” said Russell.

“A study conducted by Cogent Research, a division of Market Strategies International, indicates that more than half (53%) of institutional decision makers will increase their use of smart beta ETFs over the next three years—that’s more than any other ETF category, including market cap-weighted ETFs (48%),” according to WisdomTree. [Smart Beta ETFs Gain Assets, Critics]

As Balchunas notes, now is the time for education about these ETFs, not new terminology or marketing vernacular. We couldn’t agree more.