Smart beta is a passive investment style that seeks to systematically select, weight and rebalance holdings based on alternative weighting schemes or factors other than market capitalisation, such as fundamentals like value or profitability, or other factors such as volatility. Smart beta has gained popularity as an alternative approach to portfolio construction as it aims to deliver better-than-market returns versus traditional market-cap weighting schemes, but at a lower price point than full-blown active management.
SMART BETA
