FYI: A lot has been said about the strong market performance in 2017, but not much has been said about the impact of the wide U.S. sector dispersion on U.S. smart-beta performance.
When most equity strategies return north of 20%, one doesn’t necessarily quibble about dispersion or relative performance amongst like-minded strategies. But it’s important to understand how a smart-beta ETF is constructed and how it fits within the overall portfolio.
Regards,
Ted
http://www.etf.com/sections/etf-strategist-corner/behind-smart-beta-etf-dispersion?nopaging=1
