What is Smart-Beta and what is different about it?


#1

Originally published at: http://whichinvestmenttrust.com/what-is-smart-beta-and-what-is-different-about-it/
Smart Beta is gaining popularity as an investment strategy, but what is it and how does it differ from other investment strategies? Slowly, very slowly the concept of smart-beta is beginning to creep into the consciousness of the investment community, though it is probably still a long way from penetrating the retail investment world. Like…


#2

The terminology used could be misleading. Many would see price are referring to the share price and not how much it would cost to buy the whole company. The Dow Jones is weighted by share price, whilst most others are weighted by market capitalisation. Fluffy Beta, perhaps…? :wink:


#3

I assumed retail investors were all over smart beta funds because I’ve seen references to them in the investment press a lot.

Well done in explaining Smart Beta @robert_davies. I think this is the easiest to understand description of it I have read.


#4

Yes I agree, you explained that very well @robert_davies.