Smart beta ETFs charge investors up to three times as much as plain-vanilla index trackers, according to newly published research by Morningstar. This disparity is not justified by the additional cost of constructing and calculating a ‘smart’ index, and is a severe drag on performance. Therefore, investors should think carefully before investing in a smart…
Franklin Templeton Solutions vice-president Matthias Hoppe drills down on the risks and rewards of asset classes and the importance of diversification.
Index-tracking products continued to rise in popularity in 2015. According to data collated by research consultancy ETFGI, ETFs listed in Europe gathered a record amount of new assets in 2015.
Smart beta strategies are quickly growing in popularity, according to research commissioned by Invesco Powershares among 400 investors in Europe. However, overall portfolio allocation remains modest and the ways investors use non-market cap weighted index products varies widely across Europe.
In part two of this video interview, Schuller discusses the implications of the temporary nature of alpha opportunities for fund selection and portfolio construction.
In part two of this interview, Alexandre Théry of Auxense Gestion explains why he has a preference for focused funds, and why smart beta strategies are sometimes too clever for him.
Low volatility and value are the most commonly used smart beta factor strategies among European investors. But decorrelation approaches which combine several factors with the aim of delivering more stable returns have the highest growth potential, according to a recent survey by the EDHEC Risk institute.
Alexandre Théry, who runs a fund-of-funds for Auxense Gestion in Paris, is welcoming the recent volatility in the markets. He explain to EIE’s editor Dylan Emery why that is.
In part one of this interview, Marcus Stahlhacke, director of multi-asset strategies at Allianz GI, takes EIE’s Dylan Emery through his fund selection philosophy.
Markus Schuller, a Monaco-based consultant who gives asset allocation and strategic advice to global financial institutions, talks to EIE’s editor Dylan Emery about the investment implications of investor irrationality, and why passive should be the core of your portfolio.
Mattias Hagen, head of manager research for SEB Wealth Management in Stockholm, talks EIE’s Dylan Emery through the impact MiFID II will have on the way he selects funds.
Global ETF assets will double until 2020, according to a study by PwC. But where growth is expected to come from varies greatly between the US and Europe.
