Scientific Beta

Financial News: "As a result, pressure is being felt not just on traditional ETFs, but also in well-established smart beta strategies. Eric Shirbini, global product specialist at ERI Scientific Beta, the indexing venture launched by Paris-based academic institution EDHEC-Risk Institute, said: “We’ve seen products launching at very low fees – at cost or perhaps even slightly below – just to attract assets.”"

Financial News 07/12/2015

"(...) Exchange-traded fund providers are reluctant to call it a price war, but that has not stopped ETF fees from heading lower, with some barely more than the cost of administration. While economies of scale can offset this, some fund managers are turning to smart beta products to make up the shortfall. (...) As a result, pressure is being felt not just on traditional ETFs, but also in well-established smart beta strategies. Eric Shirbini, global product specialist at ERI Scientific Beta, the indexing venture launched by Paris-based academic institution EDHEC-Risk Institute, said: “We’ve seen products launching at very low fees – at cost or perhaps even slightly below – just to attract assets.” This is generally good news for investors but there is a danger that providers develop more complex products just to maintain their margins. (...)"