What factors are stopping the adoption of smart-beta products?

Invesco survey

Internal capability, a limited range of products and a lack of belief in the theory are factor investing's three biggest barriers to entry cited by wholesale investors, according to Invesco's annual smart-beta survey.

The survey, entitled Invesco Global Factor Investing Study 2018, found internal capability scored 6.7 out of 10 - where 10 is the most significant barrier - while a lack of products and a lack of belief scored 6.4 and 6.1, respectively. Invesco conducted interviews with 300 institutional and wholesale investors across 21 countries with $19trn assets under management. Smart-beta products may be more 'dangerous' than ETF providers claim The report said a high score on internal capability shows investors see factor investing as something entirely separate from active or passive manage...