Smart-beta products may be more 'dangerous' than ETF providers claim

Risks of factor investing

Tom Eckett
The Research Affiliates report warned factor ETFs can be "serially" correlated to one another

The Research Affiliates report warned factor ETFs can be "serially" correlated to one another

ETF providers are failing to highlight the specific risks of factor investing, according to a new white paper by Research Affiliates.

The report published by the global research house, entitled Ignored Risks of Factor Investing, criticised one of the fastest-growing areas of the ETF market as providers and academics were "severely" understating...

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