Scientific Beta

The present survey aims to provide insights into investor perceptions on exchange-traded funds (ETFs) and smart beta and factor investing strategies. While there is ample discussion by market participants on these high-growth areas of asset management and industry data is widely available, conducting a survey allows a systematic and quantified account of investors' views, experiences and future plans to be gathered. The survey thus hopes to provide useful insights, building on analysing the current responses and relating them to past results of previous editions.

EDHEC-Risk Institute has announced the results of the 11th EDHEC European ETF and Smart Beta and Factor Investing Survey, conducted as part of the Amundi research chair at EDHEC-Risk Institute on "ETF, Indexing and Smart Beta Investment Strategies". This survey, conducted since 2006, aims to provide insights into European investors' perceptions, practices and future plans in the domain of ETFs and Smart Beta.

Among the key findings of this edition in the area of Smart Beta and Factor Investing:

• About two-thirds of respondents (67%) used ETFs to invest in Smart Beta in 2018, a considerable increase compared to 49% in 2014.
  
  
• Respondents most frequently use Smart Beta / Factor-Based exposures to harvest long-term premia (as opposed to tactical use).
  
  
• Despite this strong motivation, more than 80% of respondents invest less than 20% of their total investments in Smart Beta and Factor investing strategies.