ETFs have certainly captured the investment world’s attention over the last several years. There is now an index for almost everything. Active ETFs are gaining in popularity, and will likely be a major growth area over the next 10 years. Smart-beta funds are a combination of the two – an index that is modified to overweight and underweight either positions or sectors or both, in an attempt to track the index while slightly outperforming on a net basis.
The attached article from Ignites, is a good summary of what is happening with smart-beta ETFs.