Smart Beta – is it just the latest buzzword? With WisdomTree’s Jeremy Schwartz

Smart beta, which aims to deliver a better risk/return tradeoff than market cap weighted indices, has become the investment term of the day. This podcast will discuss the basics of smart beta as well as its merits versus other approaches, as well as some of the misconceptions that prevail in the investment community. Our guest will be Jeremy Schwartz, CFA, Director of Research at WisdomTree.

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Listeners will learn:

[Frame 1:32] What does “smart beta” actually mean? Is it really a new way of investing or just a new marketing theme?

[Frame 6:18] What are some of the factors that are commonly used in smart beta investing?

[Frame 9:03] Does a multi factor approach help lower correlation?

[Frame 11:17] Is smart beta an active or passive strategy?

[Frame 12:29] What the ETF landscape looks like. Are some of the larger ETF sponsors in the industry following a similar approach?

[Frame 14:50] Why are ETFs structurally well suited for a smart beta strategy?

[Frame 17:08] How ETFs are potentially advantageous for 401(k) plans.

[Frame 18:47] Misconceptions of ETF illiquidity

[Frame 19:44] How investment advisors can utilize changing trends in the industry to serve clients better: robust open architecture models, NTF ETFs (no transaction fee) funds, and moving the investment advisory business online.

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This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The views and strategies described may not be suitable for all investors. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. You cannot invest directly in an index. The opinions expressed are subject to change as subsequent conditions vary. Advisory services offered through ACG Wealth Inc.

Sara Grillo