How Smart Beta ETFs are Changing

Constant innovation is the name of the game in smart beta benchmark development, not to mention a way for ETF providers to differentiate themselves 

Jose Garcia-Zarate 27 October, 2017 | 12:20PM

Strategic beta – commonly known as “smart beta” – ETFs are growing in popularity in Europe. They already account for 8% of the assets invested in ETFs, and the growth outlook remains positive, with an average of 10%-15% of monthly net inflows into ETFs in Europe directed to this type of products. Thus, it should come as no surprise that ETF providers consider smart beta as one of their key business areas for the coming years.

Dividend strategies remain particularly popular

Constant innovation is the name of the game in smart beta benchmark development, not to mention a way for ETF providers to differentiate themselves from each other and capture market share in what is becoming a very dynamic marketplace.

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About Author

Jose Garcia-Zarate

Jose Garcia-Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe

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