Ten Misconceptions about Smart Beta

Noël Amenc, Frédéric Ducoulombier, Felix Goltz, Jakub Ulahel: The objective of this paper is to review ten common but mistaken claims about Smart Beta, and to shed light on the underlying issues.

Author(s) :

Noel Amenc

Professor of Finance, EDHEC-Risk Institute, CEO, ERI Scientific Beta

Frederic Ducoulombier

Associate Professor of Finance, EDHEC-Risk Institute, Corporate Director, ERI Scientific Beta

Felix Goltz

Head of Applied Research, EDHEC-Risk Institute, Research Director, ERI Scientific Beta

Jakub Ulahel

Quantitative Equity Analyst, ERI Scientific Beta

Presentation :

Smart Beta strategies, as one of the strongest growth areas in investment management recently, have established a space in between traditional (cap-weighted) passive investments and traditional (proprietary and discretionary) active management. Perhaps unsurprisingly, Smart Beta has drawn fierce criticism from both advocates of traditional active management and of traditional passive management. In a nutshell, proponents of proprietary active strategies complain that Smart Beta is not active enough while proponents of traditional cap-weighting say that Smart Beta is not passive enough. Smart Beta providers have not only responded to such criticism, but have also been vocal about the benefits of their respective approaches, without necessarily agreeing with one another. Such debates have too often led to misconceptions.

Pdf
Ten Misconceptions about Smart Beta...
(-1.00 B)
Type : Position paper
Date : le 13/06/2016
Extra information :

For more information, please contact EDHEC Research and Development Department [research@drd.edhec.edu]

Research Cluster : Finance

See Also

EDHEC BBA Opening Ceremony 2017-2018
- 17-10-2017
EDHEC BBA Opening Ceremony 2018 On Monday 2nd October 2017, EDHEC held the Opening...
EDHEC Business School’s Executive MBA joins the top 100 Executive MBAs worldwide in the latest Financial Times ranking
- 14-10-2017
After the EDHEC Global MBA’s last year entry into the Financial Times MBA ranking (...
The EDHEC PhD in finance programme welcomes the 2017/2018 class!
- 02-10-2017
At the end of September, the new cohort of PhD participants has joined the EDHEC PhD in...
Otherwise#5 : New ways for economy and business
- 23-09-2017
An exclusive interview of Emmanuel Métais, Dean of EDHEC Business School in the brand...