PT  - JOURNAL ARTICLE
AU  - Ursula Marchioni
AU  - Sofia Antropova
AU  - Catherine McNaught
TI  - Smart Beta Strategies as Outcome-Oriented Solutions in the Equity Space
AID  - 10.3905/jii.2015.6.1.065
DP  - 2015 May 31
TA  - The Journal of Index Investing
PG  - 65--78
VI  - 6
IP  - 1
4099  - https://pm-research.com/content/6/1/65.short
4100  - https://pm-research.com/content/6/1/65.full
AB  - As index investing continues to grow, we are witnessing an expansion of what the beta continuum encompasses. During the 2000 dot-com bubble and the 2007–2008 financial crisis, market-capitalization weighted strategies revealed some of their limitations. As a result, increasing attention is being devoted to index solutions that go beyond the traditional space—often referred to as “smart beta.”In this article, we focus our attention on a sample of beta strategies within the equity space. By analyzing each beta’s benefits and limitations, we highlight their ultimate nature as outcome-orientated solutions. We believe the results of our analysis encourage investors to think about beta as a range of complementary tools that should be used to actively rotate portfolios from one indexed strategy to another, based on investors’ goals and on prevailing market conditions.TOPICS: Passive strategies, financial crises and financial market history, portfolio theory