The Power & Danger of Smart-Beta ETFs

The proliferation of smart-beta ETFs has been a boon to investors searching for more ways to parse the market and implement their strategies. 2015 will be a year marked by the explosion in offerings available to generate alpha at passive pricing.

Tom recently talked with MarketWatch’s Chuck Jaffe about whether issuers have gone too far souping up their offerings to chase returns or if its just the beginning of a new generation of ETFs for a new generation of investors.

Chuck shares some great analogies and metaphors to help visualize the changes going on in the market and how, in his words, “power tools are useful in one man’s hands and a weapon in another”.

Check out their chat below!