News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

ETFs

Second wave of ‘smart beta’ ETFs is coming

New, more-complicated offerings are on the way even as some question how ‘smart’ these investments really are

Just when you thought you finally had “smart beta” exchange-traded funds figured out, along comes Smart Beta 2.0.

The fund industry's launch of these supposedly "smarter" ETFs may have come at a good time. That's because a recent study of smart-beta funds-which generally weight their holdings by something other than market capitalization-raises questions about whether their past performance was due to "smarts" or mere coincidence.

WSJ Logo