Category Smart Beta
Smart-Beta Perspectives: Are you confused as well?
In a nutshell Smart-beta is lower cost approach to rule-based algorithmic active management. In general, nirvana is to outperform the market, the strategy here is to use risk factor tilts which historically delivered risk premia. Outperformance, if any, is usually at the cost of higher volatility/risk without necessarily delivering sustained risk-adjusted return. Capacity limitations suggest […]