Nizam Hamid: Is 2017 the year smart beta becomes mainstream?

'Tailored exposure' for investors

clock • 2 min read

If smart beta ETFs can help investors navigate their way through the ongoing tangle of unfolding political and socioeconomic events then, says Nizam Hamid, this could prove a defining year for the sector

Smart beta is finding itself increasingly front and centre of the passive universe. The sector's annual growth rate has overtaken the wider passive market and this looks set to be sustained for some time as the investment landscape transforms to accommodate shifts - both political and in terms of monetary policy. In Europe, last year, smart beta exchange-traded fund (ETF) assets grew 33% while the broad ETF market grew 14%. If we look at the US market, investors have predominantly traded the Trump election and subsequent rally to record highs via passive strategies mainly focused on pure...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: What will be the biggest story of 2025?

Darius McDermott: What will be the biggest story of 2025?

'There is a lot to watch in the year ahead'

Darius McDermott
clock 02 January 2025 • 6 min read
FCA launches consultation on private stock market

FCA launches consultation on private stock market

Move follows Mansion House commitment

Linus Uhlig
clock 17 December 2024 • 3 min read
Partner Insight: Is FOMO overruling investment basics?

Partner Insight: Is FOMO overruling investment basics?

In 2020 we introduced our bubbles chart showing how concentrated investors were in a particular theme. Four years on we look at what, if anything, has changed, and what it means for investors going forward.

Orbis Investments
clock 16 December 2024 • 3 min read