05 Mag Investment Strategy: Smart Beta Investing
Factors are not new. Building investment strategies on factors is not a new thing. What is new, however, is the way we can access these investment factors. Smart Beta ETFs are investment vehicles that embody one new way to access market factors, with a rule-based and transparent approach.
Here, Riccardo Ghirlandi first proposes a general overview of the way these instruments work and what could be the benefits of having them in a portfolio. Afterwards, an historical comparison is drawn between a traditional ETF as opposed to a Smart Beta ETF, with reference to a market factor.Download PDF