Smart Beta

Smart Beta is an investment strategy that blends traditional index investing with elements of active management. Instead of only relying on market capitalization (the total value of a company's stock), Smart Beta invests based on specific factors like value, momentum, or volatility. This approach aims to improve returns or reduce risks compared to conventional index funds while maintaining lower fees than actively managed funds. Essentially, Smart Beta seeks to harness systematic investment principles to achieve better performance by strategically selecting and weighting stocks based on their fundamentals rather than their market size.