Scientific Beta

ETF.com: "Amundi plans to launch an exchange traded fund (ETF) in June which tracks the EDHEC Risk Institute’s new smart beta "multi-strategy" index. Amundi and ERI Scientific Beta, the index arm of the EDHEC Risk Institute, announced a partnership to launch ETFs for the institutional market using EDHEC’s indexes in February."

ETF.com 20/05/2014

"(...) Amundi plans to launch an exchange traded fund (ETF) in June which tracks the EDHEC Risk Institute’s new smart beta "multi-strategy" index. Amundi and ERI Scientific Beta, the index arm of the EDHEC Risk Institute, announced a partnership to launch ETFs for the institutional market using EDHEC’s indexes in February. EDHEC’s new so-called multi-beta, multi-strategy indexes roll four strategies into one index: value, momentum, mid cap stocks and low volatility. The first ETF to track this composite index will be from provider Amundi in June, subject to regulatory approval. (...) Turnover costs in this index will be reduced by around 20 percent, according to Eric Shirbini, global product specialist at ERI Scientific Beta, as the four strategies in the index will “buy and sell stocks from each other” as opposed to going into “the outside world” to rebalance. (...) Shirbini said the second advantage of the composite index is performance, and the four strategies would outperform and underperform at different times, resulting in “smoother” performance over time. “That makes it easier for people to invest in smart beta,” he said. (...)"