Investment Week readers who have been watching our regular Straight Talk TV show on the online channel Investment Compass will know many a column inch and minute of TV time have been spent on the ‘next big thing' within investment, namely smart beta.
Want a value-based passive fund for the FTSE? Then pick a fundamentally inclined passive tracker by the likes of RAFI. Want a racier, more growth-oriented fund tracking the same index? Step forward an equal-weighted index where the smaller stocks by market capitalisation in the index are given an equal weighting. Want a risk-controlled version of the index, where the most volatile stocks are either eliminated or boast a low weighting? Why not invest in a minimum volatility version of the FTSE 100 index? Smart beta strategies go well beyond my three highlighted strategies – fundamental, v...
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