Category: Smart Beta Channel

Taking a Bottom Up Approach to ESG ETF Investments

As investors consider more ways to build up and diversify their portfolios, consider environmental, social and governance exchange traded funds (ETFs) that combine an integrated approach to ESG best practices with enhanced risk-adjusted return potential. For example, joining the new wave of ETF products based on ESG principles, FlexShares has come out with the FlexShares…

Factor Investing: What is the Right Number of Factors?

By Rob Bush, Deutsche Asset Management One of the key differences between factor investing and other types of investing is that factors are not mutually exclusive. With equities, for example, a stock is either German, or French, or Japanese, but never all three. Within sector classifications, a stock can either be in the Information Technology…

How to Find Value With International Smart Beta ETF Plays

With U.S. stocks looking expensive as the bull market ages, investors are looking for value opportunities and some developed international markets have plenty of value appeal. That theme has benefiting an array of exchange traded funds this year, including some smart beta plays. For example, the Franklin LibertyQ International Equity Hedged ETF (NYSEArca: FLQH), which…

First Trust Rolls Out Slew of Smart Beta ETF Options

First Trust has launched a batch of smart-beta exchange traded funds to help investors focus on dividend-paying U.S. stocks and low-volatility international components, along with a California state-specific municipal bond ETF option. The seven new First Trust ETFs include: First Trust Large Cap US Equity Select ETF (NasdaqGS: RNLC) 0.60% expense ratio First Trust Mid…

A Smart Beta Idea for International Income

Investors looking for added equity income at a time of still low interest rates throughout the developed world can consider international dividend exchange traded funds. A newer though still compelling option from that group is the O’Shares FTSE Russell International Quality Dividend ETF (NYSEArca: ONTL). The O’Shares FTSE Russell International Quality Dividend ETF debuted in…

Smart Beta ETFs Are Not All Created Equal

Smart beta exchange traded funds have quickly grown in popularity. As more investors incorporate these strategies into their investment portfolios, it is important look under the hood and differentiate one smart beta ETF from another. Like most other ETFs, smart beta ETFs are passive in nature, passively reflecting the performance of an underlying index. However,…

Two Novel Smart Beta Factors That Could Enhance International ETF Exposure

The smart beta exchange traded fund universe is quickly expanding as money managers employ various market factors and come up with new ways to potentially enhance returns or diminish risk exposure. Among the new innovations that could hit the space, the so-called Tranching and Fama-Macbeth OLS Regression Methodology, are two novel features that could change the…

What Makes Momentum ETFs Tick

Due in large part to the ascent of some well-known Internet and technology stocks, the growth and momentum factors have been performing well this year. That theme did, however, recently take some heat as the FANG stocks retreated, reminding investors that they should examine momentum-based strategies before jumping in. Even with some recent pressure on…

ESG ETFs Could Find Support from Institutional Investors

A number of asset managers and asset owners already incorporate environmental, social and governance factors, and as the popularity of exchange traded funds continue to grow, more may turn to ESG-related ETF options to easily and efficiently access this targeted segment. According to a recent survey conducted by BNP Paribas Securities Services, titled “Great Expectations:…