Scientific Beta

Wall Street Journal: "And fund firms ETF Securities and Global X Funds have each built multifactor ETFs based on indexes developed by EDHEC-Risk, a unit of the EDHEC Business School in Lille, France. According to Mike McGlone, head of research at ETF Securities in New York, the new ETFs “provide an extensive and robust solution to address the drawbacks of market-cap weighted indexes,” which tend to lean toward large-cap, growth stocks."

Wall Street Journal 07/06/2015

"(...) While Lattice’s ETFs are based on its own proprietary indexes, third-party index providers MSCI, EDHEC-Risk and FTSE-Russell are also in the multifactor game. Each index has a specific bent or tweak to its methodology that attempts to differentiate its returns. (...) And fund firms ETF Securities and Global X Funds have each built multifactor ETFs based on indexes developed by EDHEC-Risk, a unit of the EDHEC Business School in Lille, France. According to Mike McGlone, head of research at ETF Securities in New York, the new ETFs “provide an extensive and robust solution to address the drawbacks of market-cap weighted indexes,” which tend to lean toward large-cap, growth stocks. “Exposure to the four main factors—size, low volatility, momentum and value—avoids a bet on a particular factor,” he says. “And it helps smooth out the differing cycles that individual sectors are susceptible to.” (...)"