““Low volatility, high dividend, and fundamentally-weighted ETFs are poised to see the greatest growth over the next three years as two-thirds indicate they are likely to use these products,” according to a research paper entitled “The Evolution of Smart Beta ETFs” released by Cogent Research and PowerShares earlier this year. [Bright Future for Smart Beta ETFs]
PowerShares is also one of the dominant providers of volatility-based ETF strategies with funds such as the $4.3 billion PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), the largest low volatility ETF, and the PowerShares S&P500 High Dividend Portfolio (NYSEArca: SPHD). Up 14.5% year-to-date, SPHD is one of the fastest-growing PowerShares ETFs.
Attendees at Tuesday’s webcast will also learn about the benefits and drawbacks of smart beta ETFs, including the potential for enhanced returns, increased portfolio diversification, lower fees compared to actively managed mutual funds and reduced volatility.
Financial advisors who are interested in learning more about institutional use of smart beta ETFs and how they can implement these ETFs in client portfolios can register for the Tuesday Oct. 28 webcast here.