A New Way to Think About Strategic Beta ETFs

Many advisors ask how strategic beta differs from pure beta and active funds. Strategic beta exchange traded fund strategies have attracted greater investment interest through dynamic rules-based methodologies that foundations for actively managed styles captured in a low-cost index-based wrapper.

On the upcoming webcast, A New Way to Think About Strategic Beta, Steve Deroian, Head of ETF Strategy for John Hancock Investments, and Will Creedon, Director of Capital Markets for John Hancock Investments, will discuss an approach that is closer to financial advisors’ current investment process than one might think.

Financial advisors and money managers may employ a number of technical or fundamental investment styles to manage client portfolios, and these same active management styles may be found in passive, index-based smart beta ETF strategies.

For example, John Hancock offers broad smart-beta ETFs to fill out a core portfolio position, including the John Hancock Multifactor Large Cap ETF (NYSEArca: JHML), along with a suite of multifactor sector-specific ETF strategies for investors seeking to overweight targeted areas of the market.