|UNKNOWN||NORTH AMERICAN - LARGE & ETFs||_N/A|
Educational Segment. Smart Beta ETFs. They are smart indexing products. Low beta or volatility strategies address investor outcomes using Beta. They look for low beta. If you weight beta and ensure diversification across the market place, you get less risk. Low beta is not expensive but in line with the market place. There is also a ‘quality’ based set of ETFs. They look at debt to equity to reduce volatility. These ETFs are managed by computer and not actively managed by a portfolio manager. You pay a bit more than a non-smart ETF. The low volatility and higher quality strategies have historically done better through history.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc. http://www.etfcm.com