The Smart Beta Channel

Five Surefire Ways to Lose a Prospect

It’s been challenging to limit this list to five surefire ways to fail to convert a prospect, but these will be a good start.

ESG in Action: Evaluating Global Financials

Analysis of environmental, social and governance factors (ESG) is particularly important for bank investments because the confidence of their depositors and borrowers largely drives banks’ valuations.

Advisors Leveraging New Programs to Launch ETFs

Over three years $1.4 trillion moved into low-fee funds including ETFs, which are quickly becoming the most popular of 18 major vehicles. The complexity of launching an ETF and their operational overhead has kept many firms from launching funds. New programs now help firms launch and manage ETFs.

Amazon’s Lessons for Growth Investors; A New Smart-Beta Growth Strategy

Growth stocks have been outperforming their value counterparts and investors can look at Amazon as an example for why this happened. Meanwhile, new research on a smart-beta-growth strategy looks at the theoretical foundations surrounding traditional growth indices.

Investors Should Pay Attention to the Foreign Materials and Energy Sectors

We’ve been talking at length recently about the attractiveness of foreign, cyclical stocks. While foreign developed markets are attractive, emerging markets are especially attractive from a valuation perspective and are also benefiting from what we think is just the beginning of a persistently weak US dollar environment.

Live from Newport Beach. It's Smart Beta!

Our headquarters in Newport Beach is only 50 miles from the Hollywood studios, although the drive can take up to two hours in rush-hour traffic. But far more than traffic separates the studios’ world from ours.

Are Low Vol ETFs as Smart as They Sound?

“Smart Beta” ETFs and their low-volatility ETF progeny may deliver a lower beta against their relevant benchmarks, but they’re not immune to bouts of volatility, and their returns frequently come up short.

Storm Advisory—What You Need to Know Now

In July, the Institute for Supply Management’s (ISM) Non-Manufacturing Index fell to an 11-month low of 53.9, 3.5 points below its June reading of 57.4. The index measures the non-manufacturing, services industries such as food services, education, real estate, health care and more.

Factor Fitness: Understanding Equity Exposures

Equity factors are increasingly used by investors to help guide their portfolio allocations. So it’s important to have a good grasp of what factors are and how they perform through an economic cycle, in order to invest effectively.

A Smart Beta for Sustainable Growth

We demonstrate a smart beta that produces positive excess returns from sustainably faster growth in EPS. This simple, systematic strategy represents a significant improvement from today’s growth indices that fail to produce faster growth in EPS and have provided negative excess returns.

Dynamic Asset Allocation for Practitioners Part 1: Universe Selection

In 2012 we published a whitepaper entitled “Adaptive Asset Allocation: A Primer” in which we built upon the simple, robust momentum framework proposed by Mebane Faber in his 2009 study “Relative Strength Strategies for Investing.”

Building the Perfect Barbell

Investors who want to reduce risk and maintain a steady income might consider a barbell strategy that pairs interest rate–sensitive bonds with high-yielding credit assets. But first, it’s important to strike the right balance.

Factor Investing - a Time to Tilt

In my many conversations with investors and industry peers about factor investing, one topic seems to always come up: factor investing timing. I’ve had recent discussions on this topic with a central bank whose managers need to think about preserving capital and with a more nimble RIA team which explicitly wants to use timing to pursue incremental returns.

On My Radar: Opportunity Lies in Despair Not Euphoria

I listened to Bob Farrell several times a week. Bob was the chief stock market analyst at Merrill Lynch. Do you remember those old “squawk boxes?” On my desk sat a small speaker box. It was the firm’s way of communicating to the thousands of brokers.

Weighing the Week Ahead: How Strong is the Labor Market?

A holiday-interrupted week is loaded with important economic data. Since many market participants will skip Monday to stretch their weekend, the action will focus on Friday’s employment situation report.