WealthManagement.com on the current state of Strategic Beta (Smart Beta):
Investor demand for strategic beta exchange-traded funds (ETFs) continues to increase, reflecting the continuing appetite on the part of financial advisors and their clients for access to top-quality, quantitative investment expertise through transparent, liquid and low-cost products. According to Morningstar data, strategic beta ETFs had $402 billion in total assets at year-end 2014, and recorded inflows relative to assets of 19%, compared to 13% for their non-strategic-beta counterparts.
Strategic beta ETFs combine the best aspects of active management and passive indexing to help investors achieve specific investment outcomes, such as lower risk, excess returns, more income or greater diversification.
