The Evolution of Smart Beta ETFs

June 2014

KEYWORDS:

Authors:

Invesco PowerShares

Organizations:
  • Invesco PowerShares

Summary:

Institutional asset managers use a variety of investment tools and strategies to achieve their financial objectives. Recent data suggests that institutions are turning to exchange-traded funds (ETFs) at an increasing rate given the vehicle’s flexibility, transparency, and ease of implementation. Smart beta ETFs, in particular, have seen tremendous institutional growth. In fact, non-market cap weighted ETFs captured over 29% of U.S. ETF equity inflows in 2013, despite representing only 19% of assets according to Bloomberg, L.P.as of Dec 31, 2013.

With this in mind, Invesco PowerShares partnered with Cogent Research, a division of Market Strategies International, to conduct a research project on the smart beta trend. The Evolution of Smart Beta ETFs Report by Cogent confirms that the use of smart beta ETFs among institutional decision makers is poised for continued growth.