Smart Beta ETFs: What Are They? How Do They Work?

Investors seeking ways to further diversify their portfolios should consider smart beta ETFs, which use both active and passive methods of investing to enhance returns and reduce risks.

Smart beta ETFs are passive in that they still follow an index, yet they are also active through a “quantitative screening” approach of tracking and examining alternative factors such as earnings and dividends.

Jeff Weniger, asset allocation strategist at WisdomTree Asset Management, appeared on the Bloomberg Business News Network to discuss the ins and outs of smart beta ETFs. Check out the full video below:

For more on smart beta ETFs, visit our Smart Beta Channel.