Scientific Beta

Rational Reminder: "Scientific Beta, which is an indexing firm. Now, I've seen some of their stuff. I think they did the ESG products, or Scientific Beta Indexes. That's the only time I've seen their stuff, but they wrote a paper, short paper disagreeing with this idea, that there is no so size effect."

Rational Reminder 22/10/2020

Weighing in on the “Ultimate Nerd Debate” on the value and risks of small-cap allocation. [0:17:22]

"(...) Scientific Beta, which is an indexing firm. Now, I've seen some of their stuff. I think they did the ESG products, or Scientific Beta Indexes. That's the only time I've seen their stuff, but they wrote a paper, short paper disagreeing with this idea, that there is no so size effect. They took the angle that sure, you can say that, as a standalone, there's been no statistically reliable premium, and there has been an economically meaningful brand, but it just hasn't been statistically significant, so we maybe say it doesn't exist. But their stance is that taking that point of view and looking at the size factor in isolation does not make any sense. Why would you ever do that in the first place? It doesn't make any sense. It's actually a pretty good argument, and Fama-French have written about this too. (...)"