Advisers Swap Active Funds for Smart Beta ETFs

Professional investors are selling out of actively managed funds in favour of strategic beta - also known as smart beta - ETFs which cost a fraction of the price

Dimitar Boyadzhiev 11 April, 2016 | 9:46AM

Strategic-beta exchange traded funds, also known as “smart beta” ETFs, are set to capture a bigger share of European investors’ portfolios, according to the latest survey of European investment professionals carried out by EDHEC-Risk Institute.

Strategic-beta ETF fees average 0.39%, actively-managed funds charge between 1 and 2%

Within the group of 219 respondents, which include institutional investment and private wealth managers, one-third already substitute market cap-weighted and active investments with strategic-beta ETFs, while another third are considering following suit.

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About Author

Dimitar Boyadzhiev  is a Passive Strategies Research Analyst for Morningstar

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