The Rise of Smart Beta ETFs to Enhance Returns, Reduce Risks

QINT is a foreign large blend fund that seeks to enhance core international exposure. Its rules-based approach analyzes each stock’s quality, growth and value characteristics to select individual securities. It also dynamically adjusts exposures in an effort to take advantage of prevailing market conditions.

QGRO is a large-cap growth fund that seeks to enhance the core growth component of investor portfolios. The fund features a rules-based approach to identify stocks that feature a combination of quality and growth. The methodology distinguishes between stable growth and pure growth companies, dynamically allocating to each category and adjusting sector exposures, depending on the market environment.

VALQ tries to reflect the performance of the iSTOXX American Century USA Quality Value Index, which is made up of 900 largest publicly traded U.S. equity securities screened and weighted by fundamental measures of quality, value and income.

“What we’re doing is we’re trying to capture the fundamental approach of what a true asset manager does and put it into an ETF format. And that format so far in the equity space been a systematic approach. We call it ‘intelligent beta,'” Rosenberg said.

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