Rob Arnott used to argue that the popularity of “smart beta” investing strategies often made the stocks they favored too expensive to actually buy. Now, his firm says the time is right.
The details
Analysts with Arnott’s firm Research Affiliates now say there is value in smart beta, an investing approach that seeks to beat standard index funds’ returns by allocating money based on factors that have shown a relationship over time with stock performance—such as sales growth, dividend payments or volatility.
