If there is one thing that Wall Street loves, it’s a good marketing term. After all, marketing and flashy white papers/adverts are exactly what causes investors to place their hard-earned money into gimmicky funds and products. In turn, making your broker and fund manager quite wealthy off the fees. BRIC, anyone?
Today, that love of a good marketing term could be found in buzzworthy smart-beta funds.
The number of smart-beta ETFs and mutual funds has exploded in recent years. More than 68% of financial advisors polled by FTSE Russell report are using them to construct portfolios. The problem is, most of them don’t live up to their promise. But a recent tool from one of the pioneers in fundamental indexing could cater to the sector and place the ball back into investors’ courts. Particularly, when one of the biggest winning factors happens to be simply dividends from great companies.
Get a complete list of smart-beta ETFs here. Get the dividend history, holdings data and technicals of more than 500 ETFs by clicking here.