Scientific Beta

CNN Money: "Multi-factor ETFs offer investors exposure to several investment factors – the idea being that investors don't need to time when a certain factor will perform well and when others will fall out of favor. The Global X Scientific Beta US ETF (NYSE: SCIU), which is 14 months old, has proven, in real time, the advantages of the multi-factor structure."

CNN Money 29/07/2016

"(...) A steady stream of multi-factor exchange traded funds have been coming to market for over a year now. Multi-factor ETFs offer investors exposure to several investment factors – the idea being that investors don't need to time when a certain factor will perform well and when others will fall out of favor. The Global X Scientific Beta US ETF (NYSE: SCIU), which is 14 months old, has proven, in real time, the advantages of the multi-factor structure. SCIU is part of a suite of Global X ETFs that follow “EDHEC-Risk Institute indices that target multiple factors, including low-volatility, momentum, size and value. The indices also combine the five models, including Maximum Deconcentration, Maximum Decorrelation, Efficient Minimum Volatility, Efficient Maximum Sharpe Ratio, and Diversified Risk Weighted,” according to ETF Trends. (...) Year-to-date, SCIU is outpacing the S&P 500 by nearly 200 basis points, which some onlookers might attribute to the ETF's low volatility exposure. A deeper look reveals some intersection of the low volatility and momentum factors. (...)"