About one-quarter of institutional decision-makers use smart beta ETFs, according to a study by Cogent Research, on behalf of Invesco. And this figure is expected to rise.

Read: Capitalize on investment losses

The reason? Almost one-third (31%) say it’s because smart beta ETFs outperform market indexes; 18% say diversification; and 18% say to reduce volatility. Those who don’t use smart beta ETFs cite unfamiliarity as the top concern (34%).

Read: ETFs bounce back

And when asked to define smart beta ETFs, the industry says:

  • not market cap weighted (29%);
  • decisions based on predetermined rules (24%);
  • quantitative approach to market exposure (17%);
  • can be structured to track a variety of factors (13%); and
  • based on index (8%).

Originally published on

Add a comment

You must be logged in to comment.

Register on