So what’s next?
With plenty of opportunities for smart beta strategies in fixed income, you may wonder why so few smart beta bond strategies exist. Well, as I predicted in my New Year’s post, this is an area where I expect we’ll see a significant amount of development and innovation in the future. INC is BlackRock’s first important step into that exciting frontier.
* R. Clarke, H. Silva and S. Thorley, ”Minimum-Variance Portfolios in the U. S. Equity Market,” Journal of Portfolio Management, 2006.
Sara Shores is Global Head of Smart Beta for BlackRock. You can read more of her posts here.