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What is strategic beta?

Financial markets are becoming increasingly complex, and so are investment solutions. Strategic beta exchange-traded funds (ETFs) are designed to provide consistency — even in uncertain markets.

Unlike traditional ETFs, strategic beta ETFs do more than track a benchmark. They take a research-driven approach, combining the transparency, consistency and cost efficiency of passive with the investment strategy traditionally found in active management.

HOW DOES IT WORK?

Each fund starts with an investment strategy focused on an investor goal. A rules-based index is then developed based on that goal, with security selection dependent on one or more investment factors like volatility, style or theme. With research informing these rules, strategic beta funds are designed to outperform conventional benchmarks.

Your clients may use strategic beta in their portfolios a few different ways — as a core allocation or as a complement to either a benchmark investment or their favorite active strategies. It all depends on the investor goal you and your client are trying to achieve.

IS IT RIGHT FOR YOUR CLIENTS?

Strategic beta can help provide consistency, offering diversification, transparency and risk management through a rules-based, repeatable approach.

Our suite of research-driven strategic beta ETFs is designed to help reduce the uncertainty of a portfolio’s outcome in a transparent and cost-efficient package. Using best practices developed through years of active management, we apply global insights to harness the key drivers of investment performance — while managing risk.

RELATED INSIGHTS

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Colin Moore, Global Chief Investment Officer, discusses the three elements of investment return — beta, strategic beta and alpha. (2:32)

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Marc Zeitoun, Head of Strategic Beta, explains how strategic beta can be used to reduce the uncertainty of a portfolio’s outcome. (2:16)


For more information about our ETF products, please contact your wholesaler or call 888-800-4347.