According to the latest 2018 FTSE Russell Advisor Smart Beta Survey, which covered 256 full-time, fee-based financial advisors and wealth managers divided almost equally between the U.S., U.K. and Canada, 47% respondents revealed the only thing holding them back from utilizing smart beta strategies in their own portfolios is that they don’t know enough about how they work.
IndexIQ is also one of the few that offers several smart beta fixed-income strategies, or bond ETFs that do not follow the traditional market cap-weighting scheme, including the IQ Enhanced Core Bond U.S. ETF (NYSE Arca: AGGE) and IQ Enhanced Core Plus Bond U.S. ETF (NYSE Arca: AGGP), which were launched in May of 2016, and the IQ S&P High Yield Low Volatility Bond ETF (HYLV), the first high yield low volatility fixed income ETF, which launched in February of 2017.
“We’re focusing on generating a better source of alpha for our clients in the core fixed-income category, and secondly, as they lean into income, we’re looking for a better way to provide liquid, higher income while protecting their downside risk,” Yoon said, pointing to options like AGGP.
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