How to Best Utilize Smart Beta ETFs in a Portfolio

There are now a number of smart beta ETFs in the market, allowing investors to access various targeted factors to better customize their investment portfolios.

“There’s been a lot of product proliferation in the smart beta space for good reason because they’re really outcome-oriented strategies,” David Mazza, head of ETF Investment Strategy for OppenheimerFunds, said at the Charles Schwab Impact Conference.

For example, OppenheimerFunds recently launched a handful of single factor-focused, smart beta ETFs, including the Oppenheimer Russell 1000 Momentum Factor ETF (Cboe: OMOM), Oppenheimer Russell 1000 Quality Factor ETF (Cboe: OQAL), Oppenheimer Russell 1000 Size Factor ETF (Cboe: OSIZ), Oppenheimer Russell 1000 Value Factor ETF (Cboe: OVLU), Oppenheimer Russell 1000 Low Volatility Factor ETF (Cboe: OVOL) and Oppenheimer Russell 1000 Yield Factor ETF (Cboe: OYLD).

“Let’s think about single factor,” Mazza said. “Those are precision tools that investors use to get access to value stocks or get access to small size stocks in a rules-based way.”