Scientific Beta

ETF Trends: "Now, Global X is taking the scientific approach to beta with the introduction of four new ETFs. Global X’s new scientific beta ETFs are factor-based funds, but rather than isolating a single factor, such as momentum or value, the new ETFs emphasize the following four factors: Low volatility, momentum, size and value."

ETF Trends 13/05/2015

 

"(...) Smart beta exchange traded funds have been around awhile, perhaps longer than many advisors and realize. Now, Global X is taking the scientific approach to beta with the introduction of four new ETFs. Global X’s new scientific beta ETFs are factor-based funds, but rather than isolating a single factor, such as momentum or value, the new ETFs emphasize the following four factors: Low volatility, momentum, size and value. (...) “Rather than providing exposure to a single factor, like a Large Cap Value fund, the Global X Scientific Beta ETFs select stocks in a method that provides exposure to four factors simultaneously: Value, Size, Momentum, and Low Volatility. While individually each factor has historically outperformed the market, the Scientific Beta strategy seeks to smooth the cyclicality of their returns and deliver more consistent outperformance by combining multiple factors together,” according to Global X. (...)"

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