ETF Trends
ETF Trends

Morningstar’s Director of Manager Research for Passive Strategies Ben Johnson joined ETF Trends Publisher Tom Lydon at the Morningstar ETF Conference in Chicago to discuss the growth of the exchange traded products industry, including the smart beta boom

Smart beta ETFs, or strategic beta as Morningstar refers to them, are growing faster than the broader industry, but Johnson notes that growth should be accompanied by caution and expectations management.

Johnson highlighted key differences between dividend and value strategies, noting that dividend strategies often feature deeper value exposure than explicit value funds.

“Smart beta is not smart all the time,” adds Johnson.

Watch the video below to see the full interview.

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