Smart beta strategies have come of age. I remember them being discussed several years ago with either cynicism or amusement among the institutional circles. Not many took 'smart beta' seriously.
The tone has changed. By 2025, expect smart beta ETF assets to hit US$2.4 trillion globally as more investors embrace them as an effective means to gain the benefits of both active and passive investing.
That said, the smart beta approach is not immune to the effects of market cycles and volatility so financial advisers still need to tread carefully. In this edition, we find out why smart beta multifactor strategies can potentially offer investors 'more outperformance for less' based on the thinking of iShares by BlackRock.
Read the article here for more.