etfexpress brings you the 2016 Smart Beta ETF report, featuring the history of factors; robotics and automation in a thematic portfolio and the story behind the undeniable growth of the smart beta sector
The 'Smart Beta 2016' special report comprises four separate articles listed below, these can be read individually or as a sequence.
Smart beta indexes and the ETFs based upon them have seen huge growth over recent years. Their ability to sit midway between active and passive investment management has endeared them to an audience of investors who have been floundering in a low interest rate and expensive equity environment.
Almost a decade since the 2008 crisis and following an extended period of low interest rates, investors are actively looking for new ways to create wealth. Alternative sources of return such as via thematic investing, have the potential to unlock these new pockets of opportunity.
Francois Millet (pictured), head of ETF and index product development at Lyxor says that 2016 has been the year of true take-off for smart beta in the ETF space. Millet reports that end of September saw EUR25 billion in assets in smart beta ETFs for Lyxor in Europe, with some EUR6.5 billion in flows.
Dan Draper (pictured), Global Head of PowerShares by Invesco, describes factors as the building blocks of portfolios – the DNA of a portfolio's return stream.