ETF investors bemoan lack of research for fixed income smart-beta strategies

Survey of European ETF investors

Tom Eckett
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EDHEC-Risk: ETF investors bemoan lack of research for fixed income smart-beta strategies
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EDHEC-Risk: ETF investors bemoan lack of research for fixed income smart-beta strategies

European ETF investors are "significantly" interested in investing in smart-beta fixed income products but expressed concern about the lack of research in the area, according to a survey conducted by the EDHEC-Risk Institute.

The annual report, entitled the EDHEC European ETF and Smart Beta and Factor Investing Survey, found just 17% of the 163 respondents already use smart-beta and factor investing for fixed income. Of this sub-sample of respondents, some 80% invest less than 20% of their total investments in these products, while 12% invested between 20% and 40% of their portfolio and only 8% went as high as between 40% and 60%. ERI Scientific Beta: Providers fail to disclose key risks to smart-beta investors Furthermore, the report found respondents averaged a score of 3.13 - on a scale from 0 (stron...

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