|UNKNOWN||NORTH AMERICAN - LARGE & ETFs||_N/A|
Educational Segment. Smart ETFs - Multi-factor products. iShares has a forecast on where things are going. They see $1 Trillion US$ by 2020 and 2.5 by 2025 in these products. There are two factors suggesting these forecasts: They has the potential to disrupt active management; and the have the potential to address the challenges investors are facing in today’s market. What is new about mult- factor investing is the technology. It is based on long term proven drivers of return. Their approach of combining factors means you don’t have to forecast which is the winning factor of the future. Value, size, quality and momentum are the four factors they combine into one investment solution. If you look at F-class (compensation component of cost is removed) mutual funds they have a cost of just below 1%. iShares multi-factor ETFs are 45 basis points. It is more affordable.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc. http://www.etfcm.com