Smart Beta ETFs
Smart beta ETFs are ETFs whose holdings aim to intentionally diverge from a broad market cap weighted index. Smart beta ETFs mimic commonly known investment strategies or risk factors pursued by institutional active managers. They offer a set of institutional-quality tools for managing Risk-Budgeted portfolios.
Factors & Factor Based Investing
Factor based investing is an important subset of the smart beta universe. Factors are broad, persistent drivers of returns (and risks). For example, the seven we tend to emphasize the most in our investment decision-making at CLS are: value, momentum, quality, minimum volatility, size, credit, and duration. You can read more about factor based investing in our white paper.