Maintaining Momentum: Using Trends to Beat the Market

The momentum effect – the fact that, over time, winning assets will continue winning and vice versa – is gaining in popularity as an investment strategy. Although momentum has not yet been fully embraced in all quarters, this is set to change as investors recognise the potential of this robust and persistent factor. The FT’s…

Smart Beta: What you need to know

  Smart beta strategies aim to improve returns, lower risk and increase diversification through a transparent, rules-based approach. Smart beta is the middle ground between active and passive management. Smart beta can offer low-cost exposure to one or several different investment factors including value, momentum, low-volatility, quality or size.  In recent years ‘Smart beta’ has…

#InsideETFs – Smart Beta Deep Dive

Today at InsideETFs one of the best panels of the day was titled “Smart Beta – A Deep Dive”.  The panel was moderated by FactSet and the format emulated the U.S. Presidential Debates, where each panelist was given two minutes to extrapolate their thoughts on Smart Beta (a term universally agreed upon as not so…

#InsideETFs -The Next Wave of Innovation

Day 2 of the Inside ETFs conference in Hollywood, Florida concluded with a panel discussion amongst senior executives from some of the industry’s Titans in fund management and indexing including Vanguard, Invesco, BlackRock, SSgA, MSCI and Van Eck.  The panelists were asked for their opinions on ways to improve the ETF industry and what types…

#InsideETFs – CNBC’s Hottest ETF Topics

The World’s largest ETF conference gets underway in Hollywood, Florida on January 24 with four information packed days of speaking panels, technology demonstrations and killer cocktail parties.  Trendrating will be amongst the many product, data and technology exhibitors participating in the event (Booth 319).  CNBC’s @BobPisani will be broadcasting live as well as moderating a panel discussion. …

The Importance of Momentum in a Multi-Factor Smart Beta Strategy

Including the Momentum Factor as part of a “smart beta” strategy is proven over time to boost risk-adjusted returns. Smart beta ETFs seek to combine the best of active and passive investing by outperforming the market while keeping costs low. By adhering to rules-based methodologies, these ETFs remain transparent and easy to understand. Different risk…

What Constitutes a Robust Momentum Factor Model?

What Are the Attributes of a Robust Momentum Model? While smart beta strategies aim for market beating performance, it doesn’t always work out that way. A strategy is only as good as the expertise of the team constructing the model as well as how rigorously it was tested against actual market conditions. Momentum Factor Models are not all created…