There are advantages to embracing a multi-factor. Said another way, momentum can be style one year while low volatility shines the next year. That was the case in 2013 and 2014 when momentum went from best to worst among the four factors while low volatility went from worst to first. SBEU helps alleviate the burden of single factor isolation. [Smart Beta Boom]
DBEU allocates nearly 31% of its weight to U.K. stocks, which is not a bad place to be with the FTSE 100 resting near all-time highs. In 2014, U.K. firms once again offered excellent dividend growth. Payouts there surged 31% to $135 billion, according to Henderson Global Investors.
Germany an France, the Eurozone’s two largest economies, combine for 23.6% of SBEU’s weight. The new ETF, which charges 0.4% per year, has gained 6.4% since coming to market at the end of January. [ETF Securities Continues Equity ETF Expansion]
ETFS Diversified-Factor Developed Europe Index Fund
