FYI: Invesco has published its latest study, asking for investors’ opinion on factor investing. The survey interviewed 300 investors, both wholesale and institutional, across 21 countries.
ETPs, primarily ETFs, account for over half of the vehicles used in factor investing for smart beta strategies according to the survey. Alongside active and passive methods, factor investing has emerged as the “third pillar of investing”, with 60 per cent of investors saying they will increase their factor allocations over the next three years.
Four trends were identified as barriers to the development of factor investing. These barriers include belief in theory, internal capability, product availability and executive support. Scored from 1 to 10 (10 being the largest of barriers), investors believe that all factors, except for product availability, have become less of an obstacle since last year.
Investor capability has improved by 1.8 points, having initially been scored 8.3 in 2016 when the survey was first launched. These improvements suggest that more investors are gaining confidence in factor investing and it is gradually becoming more accessible in some parts of the world.
Regards,
Ted
http://www.etfstream.com/news/5106_are-etfs-a-key-driver-for-the-growth-of-factor-investing
