Scientific Beta

ETF.com: "We look at SCIU as a good core holding, around which we can form our other factor rotation. It's not market-cap-weighted, but it's still linked to the S&P, so it's a plus to have something factored in to what we already use as an anchor point. So actually, SCIU took a lot of money away instead from the asset-managed funds that we'd held for awhile."

ETF.com 20/07/2016

"(...) Interview with Patrick Bobbins, Trading and Portfolio Manager, Carroll Financial Associates.
What do you like about factor-based investing?
It communicates well to the client. Often, we can buy an active manager, but we're not sure exactly what he does. He might be a growth manager, or a value manager or he might try to achieve low volatility—but at the end of the day, the fund is still up to manager discretion. Buying a factor in its pure form, however, is buying an idea, a concept, a process. Factors give us a pure way to invest in what active management has been screening for, such as value or momentum. And the Global X Scientific Beta US ETF (SCIU), in particular, offers a cheap way to invest in factors; it's just 19 basis points right now.
Do you use SCIU as a replacement or a supplement to single-factor investing?
We use it in addition to single-factor investments. We look at SCIU as a good core holding, around which we can form our other factor rotation. It's not market-cap-weighted, but it's still linked to the S&P, so it's a plus to have something factored in to what we already use as an anchor point. So actually, SCIU took a lot of money away instead from the asset-managed funds that we'd held for awhile. (...)"