Scientific Beta

ETF Strategy: "Smart beta exchange-traded funds are meeting investors’ expectations, with a satisfaction rate of 86%, according to a survey of 180 European investment professionals conducted by EDHEC-Risk Institute and commissioned by Amundi ETF."

ETF Strategy 30/09/2016

"(...) Smart beta exchange-traded funds are meeting investors’ expectations, with a satisfaction rate of 86%, according to a survey of 180 European investment professionals conducted by EDHEC-Risk Institute and commissioned by Amundi ETF. (...) When asked how smart beta has improved their investment processes, 81% of investors believe smart beta indices avoid concentration in very few stocks or sectors, and 79% think diversification across multiple strategies allows a reduction of risk and adds value. The prime motivation for 87% of respondents when investing in smart beta ETFs is the capturing of factor premia, with value, low volatility and size factors considered as the most likely to be rewarded. Ease of implementation, low turnover and transaction costs are considered to be key factors when adopting a strategy. (...)"