“The survey demonstrates accelerating interest in and implementation of smart beta indexes among global institutional asset owners,” Rolf Agather, managing director of North America research at FTSE Russell, said in a note. “While many asset owners and consultants have increased their understanding of smart beta, continuing innovations in other asset classes and the multi-factor arena underscore the need for more information and education. We hope the results of the survey provide a degree of insight for all market participants with an interest in smart beta.”

Additionally, the survey suggests that further growth in the smart beta space could be driven by asset owners who are still evaluating smart beta indices, along with those with existing allocations making increased smart beta allocations over time.

The increased adoption from institutional investors is good news for all ETF investors.

Related: Liquidity For Smart Beta ETFs Improves

“As institutional investor comfort with smart beta strategies climbs, volume for these ETFs should improve, keeping bid/ask spreads low, regardless of asset base, for all investors,” Todd Rosenbluth, S&P Global Market Intelligence Director of ETF Research, said in a research note.

For more information on smart beta ETFs, visit our smart beta category.