Abstract
A new category of exchange-traded funds (ETFs), arguably referred to as smart-beta ETFs, has lately issued a meaningful challenge to traditional ETFs. Although they seem new, a review of the relevant academic literature shows that most of the ideas behind these innovative products come from this scholarly work.
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Notes
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They were created concurrently by Research Affiliates and WisdomTree.
- 2.
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Blitz, D.C., and P. van Vliet, “The Volatility Effect: Lower Risk without Lower Return,” Journal of Portfolio Management, 34(1) (2007), pp. 102–113.
- 14.
Apparently, RA and WisdomTree, a significant ETF sponsor, developed fundamentally weighted indexes independently and sued each other in 2011 for using a similar indexing approach.
- 15.
ETF Global LLC is an independent management consulting firm that offers investment advice, research support, and risk analytics services focusing on the ETF industry (http://www.etfg.com).
- 16.
iShares S&P 500 Value Index Fund ETF (IVE), iShares S&P 500 Growth Index Fund ETF, iShares Russell 1000 Value ETF (IWD) and iShares Russell 1000 Growth ETF (IWF), all issued by BlackRock, were rolled out on May 26, 2000.
- 17.
According to statistics from the Investment Company Institute as of February 2014.
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Meziani, A.S. (2016). Smart-Beta ETFs: Market Growth and Performance Trends. In: Exchange-Traded Funds. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-39095-0_6
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DOI: https://doi.org/10.1057/978-1-137-39095-0_6
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