Many investors may be exposed to unintended risks as they rely on traditional market capitalization-weighted index funds. However, investors may consider diversifying with smart beta ETFs that take an alternative view on the markets.
“There is a better way to be diversified when you are investing in the market because we don’t know how long the rally will last, we don’t know what the dips are going to look like,” Mannik Dhillon, President of Victory Shares and Solutions at Victory Capital, said at the 2018 Morningstar Investment Conference.
Specifically, Dhillon pointed to the VictoryShares US 500 Volatility Wtd ETF (NasdaqGM: CFA) as an attractive alternative to diversify market exposure.