FYI: Smart beta ETFs have proliferated like wildfire across the ETF universe. Depending on how broad a definition you use, there could be more than 1,000 such funds currently listed on U.S. exchanges.
This hasn’t just happened by chance. There’s tremendous demand for smart beta strategies, with investors of all stripes buying these funds.
There are many reasons investors may want to consider smart beta ETF strategies in their portfolios. But perhaps the biggest reason is the most straightforward—the possibility of better returns. Investors want to outperform market-cap-based indices, and they believe smart beta can help them do that.
The possibility of outperformance is also the main selling point smart beta ETF issuers use to market these products, and at least to some extent, the academic research backs them up.
Regards,
Ted
https://www.etf.com/publications/etfr/smart-beta-returns-over-time?nopaging=1
