Some alternative index-based ETFs, though, have been on the market for quite a while. For example, the PowerShares FTSE RAFI US 1000 Portfolio (NYSEArca: PRF), which launched on December 19, 2005, will soon be celebrating its 10th anniversary. PRF along with a suite of PowerShares RAFI-based ETFs track fundamental indices comprised of stocks based on factors like book value, cash flow, sales and dividends.
PowerShares also offers one of the largest low-volatility themed equity ETF, the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), which tracks the least volatile stocks on the S&P 500. SPLV has also been outperforming the broader S&P 500 index. [Low-Volatility ETFs Outperform in Shaky Market Conditions]
Among institutional decision makers, 53% expect to increase smart-beta ETF allocations over the next three years while 46% of non-users play to explore the idea of smart-beta ETFs in their portfolios. Financial advisors have a similar mindset with nearly two-thirds planning to increase their smart beta allocations this year, according to a recent survey by ETF Trends and RIA Database. [Smart Beta Growth Powers PowerShares]
Money managers are jumping on the smart-beta ETF bandwagon as more investors shift into alternative index-based strategies. For instance, PIMCO is partnering with Research Affiliates, J.P. Morgan also recently launched its own smart-beta option, and Nasdaq OMX Group (NasdaqGS: NDAQ) acquired indexer Dorsey Wright & Associates. [Large Waves in the Smart-Beta ETF Space]
Advisors interested in attending the upcoming ETF Virtual Summit on Wednesday, January 21 can register here.