Smart Beta is the fastest growing segment of the ETF industry, reports ETF Strategy:
“Smart beta, or intelligent indexing, is an investment strategy that resides in between passive and active management,” says Stephen Tu, Moody’s Vice President
Compared with passive management, smart beta promises enhanced returns over cap-weighted benchmarks. Compared with active management, it offers potential returns over traditional indices at a lower cost with greater transparency.
Following a 24.6% increase in assets last year, ETFs are looking to grow further via new methods, including smart beta. Smart beta is currently the fastest-growing sector within the ETF space, and grew at an impressive annual rate of 43% in terms of combined AUM of the top six players. (my emphasis added)
