Scientific Beta

ETF.com: "The monthly reports on smart beta performance from ERI Scientific Beta show that diversified factor indexes have generated higher returns than their market cap counterparts every month this year, and year-to-date as a whole."

ETF.com 09/09/2015

"(...) But could combining factors be the next big push? Marketing and sales teams will be eager to reassure investors that by packaging up several factors into one index, their ETF is more likely to perform well throughout all market cycles. The monthly reports on smart beta performance from ERI Scientific Beta show that diversified factor indexes have generated higher returns than their market cap counterparts every month this year, and year-to-date as a whole. In August, the best performing index in their range was the SciBeta Developed Mid Cap Diversified Multi-Strategy index, with a relative return of 1.86 percent compared to the broad cap-weighted index. We have already seen this trend take hold with multi-factor ETFs launched by Amundi and Morgan Stanley in partnership with EDHEC’s Scientific Beta. The Amundi Global Equity Allocation Scientific Smart Multi Beta A-EUR UCITS ETF (SMRT) has grown to a very healthy €423 million, and has year-to-date returns of 6.65 percent in euro terms. The Morgan Stanley Scientific Beta Global Equity Factors UCITS ETF (GEF) has fallen over 1 percent YTD in USD terms but has still grown to $116 million. Not too shabby, compared to Market Vector’s combined $18 million AUM. (...)"