Smart beta
InvestingDefinition
Investment products that systematically tilt toward factor exposures (value, momentum, quality, low-vol, size) rather than market-cap weighting. Sit between passive and active. Cheaper than active, more thoughtful than pure cap-weighted.
Examples: VLUE (value), MTUM (momentum), QUAL (quality), USMV (low vol), AVUV (small-cap value). The factor premiums are real but have multi-year droughts; expect to underperform vanilla S&P at times.
Examples: VLUE (value), MTUM (momentum), QUAL (quality), USMV (low vol), AVUV (small-cap value). The factor premiums are real but have multi-year droughts; expect to underperform vanilla S&P at times.
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