Strategic beta is expected to be another area of growth for ETF issuers in the coming years. Analysts believe that will benefit BlackRock and Invesco.
“The expansion of smart beta will benefit asset managers with businesses centered around smart beta the most. Invesco’s Powershares franchise, which offers smart beta ETFs, will benefit, as will Blackrock. Guggenheim may also benefit given the majority of its ETFs are based on non-traditional indexing,” according to a research note by Moody’s Investor’s Service in a note published earlier this year. [Smart Beta Boom Could Lift BlackRock, Invesco]
Illinois-based PowerShares has one of the oldest and largest lineups of smart beta ETFs, spanning industry, sector and international offerings, among others.
ETF Assets Under Management
Chart Courtesy: Morningstar
Tom Lydon’s clients own shares of EFA, EEM, IVV and LQD.