Scientific Beta

ValueWalk: "Interestingly, even though investors are flocking to smart beta ETFs, respondents favor passive funds replicating smart beta indices (64%) but also use active solutions, albeit to a lesser extent (44%). Replication of smart beta strategies are chosen for the following reasons: “Costs, transparency of methodology and availability of information, which represent the main reasons why passive strategies are normally selected."

ValueWalk 13/06/2017

"(...) The EDHEC-Risk Institute publishes a study every year on the use of ETFs and Smart Beta strategies among investors. Now in its tenth year, the study provides a useful insight into the world of exchange traded funds and investors’ love of the instruments. (...) Interestingly, even though investors are flocking to smart beta ETFs, respondents favor passive funds replicating smart beta indices (64%) but also use active solutions, albeit to a lesser extent (44%). Replication of smart beta strategies are chosen for the following reasons: “Costs, transparency of methodology and availability of information, which represent the main reasons why passive strategies are normally selected. Discretionary strategies are preferred for the reactivity and dynamism they allow, with 68% of respondents indicating the ease to change portfolio allocation as the principal advantage.” (...)"