Looking to do a bit more research on alternative beta, or smart beta, strategies? Here are a few links and tweets that may help.
But what exactly is smart beta anyway? The definition isn’t clear, but it does seem to include nearly all systematic index strategies that are not capitalization weighted. These strategies can be used to diversify portfolios away from capitalization weighted indexing or active management, and help investors target specific sources of return that can generate excess returns over a capitalization weighted index, or reduce risk versus a standard benchmark. (Just as a side note, we prefer the term “alternative beta” as a descriptor for the category or set of strategies that provide investors with different, and ideally more efficient, exposure to the market.)
How to be smart about smart beta:
Cerulli is forcasting a surge:
Towers Watson wants to help you understand smart beta (and these are some smart folks!):
Even real estate can be smart beta:
And Research Affiliates wants you to know there is career risk associated with being in smart beta (these folks are smart too!):
How do you define smart beta, and what are your experiences with alternative beta strategies? Share your thoughts in the comments section below?