|UNKNOWN||NORTH AMERICAN - LARGE & ETFs||_N/A|
Educational Segment. Momentum and value in smart beta ETFs. Vanguard has a couple of smart strategies. They think smart indexing is an active strategy. They debate Larry in disagreeing it is active in that it is a set of rules. The Momentum strategy is benefiting from a behavioral bias in the market place where investors are slow to react. The Liquidity strategy focuses on companies that are smaller and don’t trade as much, aren’t in the news as much and so may be undervalued. Investors overpay for liquidity in the market place. Less liquid names, also have more risk. A quarter of Vanguards assets under management are actively managed.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc. http://www.etfcm.com