Scientific Beta

Global X Funds, the New York-based provider of exchange-traded funds (ETFs), rang the opening bell at the New York Stock Exchange on 9 February, 2016 to celebrate its suite of Scientific Beta ETFs. 

Global X Funds, the New York-based provider of exchange-traded funds (ETFs), rang the opening bell at the New York Stock Exchange on 9 February, 2016 to celebrate its suite of Scientific Beta ETFs. 

Bruno del Ama, CEO of Global X Funds, commented: "We're thrilled to celebrate our Scientific Beta suite of ETFs today. With hundreds of smart beta ETFs in the market, we are proud to offer what we believe are among the highest quality and most academically-minded strategies available."

The funds cover four regions and include the Global X Scientific Beta US ETF (SCIU), Global X Scientific Beta Europe ETF (SCID), Global X Scientific Beta Japan ETF (SCIJ), and Global X Scientific Beta Asia ex-Japan ETF (SCIX). The funds track indexes developed by the EDHEC Risk-Institute, a leading academic institution for applied financial research based in France. Investors often consider these Scientific Beta strategies as replacements for more expensive actively managed funds, as they seek to outperform market cap-weighted indexes at a fraction of the fees typically charged for active management. Representing the next generation of smart indexing, the Scientific Beta ETFs capture four historically well-rewarded factors: Value, Size, Momentum, and Low Volatility. While each factor has historically outperformed the market over the long term, they can experience periods of underperformance. The Scientific Beta strategy seeks to smooth returns and deliver more consistent outperformance by providing exposures to multiple factors at once.