FYI: Smart-beta strategies are one of the hottest investment trends in exchange-traded funds; ETF.com estimates there are nearly 1,000 of these funds.
Using the term “smart beta” as a catchall for strategies like fundamental indexing or factor-based investing, these strategies are rules-based, and aim to deliver better risk-adjusted returns than traditional market-cap-weighted indexes. Some people in the ETF industry say smart-beta strategies have the benefits of active management, but have the low costs associated with indexing.
Regards,
Ted
http://www.etf.com/publications/etfr/active-another-name?nopaging=1
