Scientific Beta

Financial News: "Some providers, such as MSCI and EDHEC-Risk, have put together different styles into multi-factor products in a bid to make performance more consistent."

Financial News 04/06/2014

"(...) According to delegates, several providers have switched their focus from ETFs which track cap-weighted indices to specialist products which replicate the performance of different investment factors such as value, growth and low volatility. Such techniques, called factor investing, have become better known as smart beta. Academic studies suggest smart beta factors beat cap-weighted indices over time, although they can underperform over certain periods. (...) Some providers, such as MSCI and EDHEC-Risk, have put together different styles into multi-factor products in a bid to make performance more consistent. (...)"