Scientific Beta

ETF insight: "Interesting is though, that the partner in terms of the index construction process, is EDHEC – which, if memory serves, was the one firm a while back to state that if their smart beta strategy failed to add value, then they wouldn’t charge fees …"

Structured Retail Products 15/02/2017

"(...) Desjardins Wealth Management recently filed for their launch of a total of 9 ETFs, covering multi-factors strategies, as well as fixed income and preferred shares. (...) Interesting is though, that the partner in terms of the index construction process, is EDHEC – which, if memory serves, was the one firm a while back to state that if their smart beta strategy failed to add value, then they wouldn’t charge fees … => Click HERE for more info on “Scientific Beta”. All-in, if factors are good (and they can be), then the multi-factor flavor revolves around electing the “all-season” version, meaning blending factors such that one isn’t left in the cold in the one factor that happens to be out of favor for … (years?) – so let’s say Multi-Factors are a good thing and certainly worth considering versus the consistently underperforming active management space … (...)"