In recent years, index-enhanced ETFs have become more and more popular among market investors because they can obtain more stable returns when the market is volatile, and the main strategy used by this ETF is the smart beta we will introduce today.
Smart beta and factor investing, which combine the advantages of passive investment and active investment, are increasingly valued by the investment community, especially in the quantitative field. With the right implementation of a smart beta strategy, risk can be reduced or diversified at a lower cost than traditional active management and index investing, resulting in a better diversified portfolio.
In recent years, the application of smart beta has developed rapidly, with the penetration rate increasing from 26% in 2015 to 73% in 2022, and the variety of smart beta products on the market is wide and increasing.
This book "Smart Beta and Factor Investment Practice" is a book that systematically explains the past and present lives of smart beta, starting from the most basic theory, talking about how to analyze and select smart beta strategies and build more efficient investment portfolios.
The advantages of Smart Beta mainly include:
Improve portfolio returns without increasing equity asset allocation;
Reduce portfolio volatility without reducing allocation to equity assets.
Through this book, you can learn:
the evolution, definition and composition of equity smart betas, and the desirable characteristics of smart beta products;
the origin, theory and risk, behavior and structure of factor investment, and the reasons for the existence of factor excess returns;
Various weighting schemes for capturing the benefits of smart beta factors;
Performance characteristics of intelligent beta factor strategies;
Examples of factor investing, smart beta implementation, portfolio construction, and multi-strategy multi-manager portfolios other than equity assets.
This book is suitable for people with a certain investment foundation, as well as investors and fund managers who seek to stay properly forward-looking and disciplined, achieve long-term goals, and build more efficient portfolios.