FYI: So-called smart-beta exchange-traded funds were at the head of the class in 2018.
The funds—those that track alternative, rule-based indexes instead of the traditional market-capitalization-based ones—pulled in a net $75 billion in assets in 2018. They accounted for half of the inflows into U.S. equity ETFs, according to Deutsche Bank ’s annual review, released last month.
Although the absolute net flow of money to smart-beta ETFs was a little lower than in 2017—likely because markets were so volatile in 2018—their share of total flows reached a three-year high. That indicates investors still have a strong appetite for alternatives to cap-weighted funds such as the SPDR S&P 500 ETF (ticker: SPY).
Five years ago, there were only about 300 smart-beta equity ETFs; now there are twice as many, according to Morningstar data.
Regards,
Ted
https://www.barrons.com/articles/smart-beta-etfs-2018-flows-51549055973?mod=djem_b_Weekly barrons_daily_newsletter
