Smart Beta ETFs - what's this all about?

👉 Use my app to build your own ETF or stocks portfolio: https://systemtrader.show/ST

With the popularization of ETFs, associated with passive investing based on the following simple indices, factor ETFs (also called smart / strategic beta) began to gain popularity.

It seems to be a response that investors do not want to be "average" - earn as much as the broad market, but still want to use ETFs. Therefore, after the 2007-2009 bear market, such ETFs began to spring up like mushrooms. Factor ETFs, in theory, are supposed to be a remedy to earn more than the broad market while still appearing to be passive - the investor buys ETFs and keeps them in their portfolio like "good old" ETFs.

What are these so-called factors? What factors are used in ETFs? How do they work? I am talking about all this in the material, introducing you to the world of factors. The next planned materials will go deeper into the subject, paying particular attention to the risks associated with this type of instrument.

Видео Smart Beta ETFs - what's this all about? канала Jack Lempart