Scientific Beta

ETF Strategy: "The outperformance of Scientific Beta Multi-Beta Multi-Strategy Indices, produced by EDHEC-Risk Institute’s smart beta arm, Scientific Beta, offers evidence in support of multi-factor strategies. Their range of indices have posted positive relative year-to-date performance in comparison to their cap-weighted counterparts, with an average outperformance of 3.1%."

ETF Strategy 04/09/2015

"(...) For many, the investment holy grail is a strategy that will outperform across all stages of the market cycle. Multi-factor smart beta strategies are one of the more recent attempts to achieve this. The heightened volatility witnessed so far in 2015 has provided an excellent backdrop against which to judge their performance. (...) The outperformance of Scientific Beta Multi-Beta Multi-Strategy Indices, produced by EDHEC-Risk Institute’s smart beta arm, Scientific Beta, offers evidence in support of multi-factor strategies. Their range of indices have posted positive relative year-to-date performance in comparison to their cap-weighted counterparts, with an average outperformance of 3.1%. During the month of August alone, these same indices all made positive returns, with an average outperformance of 1.6%. According to Scientific Beta, multi-factor offerings aim to provide robust performance in relation to cap-weighted indices in all market conditions. This robustness is due to the balance of factor exposures and a good diversification of weighting schemes. This enables each of the multi-factor indices to benefit over the long-term from exposure to the rewarded risk factors that they represent and for volatility to be reduced by the diversification technique. (...)"