In the words of legendary investor Benjamin Graham: Price fluctuations have only one significant meaning for the true investor – they provide an opportunity to buy wisely when prices fall and sell wisely when they advance a great deal. While advocates of smart beta index methodologies don’t make any claims that these strategies are able to “time” allocation decisions with market movements, we believe they can help investors take the emotion out of investing and incorporate the discipline necessary to regularly rebalance investment allocations.
Talk to your advisor to learn more about smart beta index strategies. You can also download our investor guide to smart beta ETF strategies.
1 Source: Bloomberg L.P.
Important information
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The 1,000 equities with the highest fundamental strength are weighted by their fundamental scores. The index is reconstituted annually.
The Russell 1000® Index is an unmanaged index considered representative of large-cap stocks. The Russell 1000® Index is a trademark/ service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
Past performance is no guarantee of future results.