ProShares Head of Institutional Investment Strategy Joanne Hill joined ETF Trends Publisher Tom Lydon at the Morningstar ETF Conference in Chicago to discuss the evolution of smart beta exchange traded funds.
Hill noted smart beta is in fact an index strategy “with a little bit of an active flavor to it.” Importantly, Hill pointed out that many of the rules-based strategies smart beta products follow lend themselves well to the ETF format.
In a research note out last month, Morningstar said “63% of the 51 non-strategic-beta U.S. equity ETFs and 76% of the 92 strategic-beta U.S. equity ETFs have 4- or 5-star ratings.” By comparison “just 29% of 6,088 share classes of 1,811 U.S. equity mutual funds had four- or five-star ratings.”
Watch the video below to see the full interview.
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