“As fixed income ETFs are increasingly recognized as a mechanism for improved liquidity and market access, the adoption and interest have also grown significantly over the last year,” Shores said. “With that, investors are naturally asking – just as they did with equities – can smart beta approaches help to reduce risk or improve returns in fixed income? Indeed many of the factors you’ve become familiar with in equities are also in bond markets.”
Lastly, Shores believes that smart beta may grow alongside traditional avenues of investments, complementing active and passive strategies.
“More and more I see (and not just in my own presentations!) a trinity of active, passive and smart beta and replacing the traditional approach,” Shores added.
As the U.S. heads toward the ninth year of the equity bull run, market experts will review the stock market along with the risks of being overweight in overvalued stocks in traditional market cap-weighted indices and look to customized index-based alternatives that could better manage the market environment ahead on the the annual online ETF Trends Virtual Summit on February 8.
Financial advisors interested in smart beta ETF strategies may hear from Arne Noack, Director of ETP Manufacturing at DeAM, Todd Mathias, Vice President of Franklin Templeton Investments, and Mannik Dhillon, Head of Investment Solutions, Product and Strategy at Victory Capital, on the ETF Trends Virtual Summit where they will touch on potential benefits factor-based strategies may provide for a diversified investment portfolio.
Financial advisors who are interested in learning more about CFP/CIMA accredited panels on the online conference can register for the February 8, 2017 ETF Trends Virtual Summit.