Scientific Beta

ETF Strategy: "Smart beta strategies are effective at isolating and capturing risk premia, according to Scientific Beta, a commercial venture of EDHEC Risk Institute. The firm’s latest research paper, “Smart Beta is not Monkey Business”, confirms that investors are able to use smart beta investment products, such as certain exchange-traded funds, to achieve specific factor exposures."

ETF Strategy 29/03/2016

"(...) Smart beta strategies are effective at isolating and capturing risk premia, according to Scientific Beta, a commercial venture of EDHEC Risk Institute. The firm’s latest research paper, “Smart Beta is not Monkey Business”, confirms that investors are able to use smart beta investment products, such as certain exchange-traded funds, to achieve specific factor exposures. The paper investigated claims that all smart beta strategies gain exposure to the size factor and that any out-performance is solely attributable to this exposure, and that similar results may be obtained by a random, so-called “monkey” weighting strategy. The monkey label comes from the idea that a monkey would be able to generate similar performance through a random selection of stocks. (...)"