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Smart beta is quickly becoming a way to gain quasi-actively managed stock market exposure to potentially enhance overall returns. The study revealed three in four ETF investors who invested in smart beta have cut active exposure for smart beta exposure in the last three years.
When picking out a smart beta strategy, relevance in a portfolio, historical performance and underlying indexing methodology rank among the top qualities to choose from.
While smart beta has gained in popularity, the ongoing need for education remains evident. ETF investors also showed interest in learning more about how to evaluate and use smart beta strategies, according to the Schwab study.
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