Why Smart Beta Is Still in ‘Early Days’

Why Smart Beta Is Still in ‘Early Days’

Invesco’s Head of ETFs John Hoffman talked about smart beta ETFs on the red carpet at the etf.com Awards show in May.

Reviewed by: Lisa Barr
Edited by: Sean Allocca

Smart beta ETFs have emerged as a popular investment option for investors looking for other options besides traditional passive index or actively managed mutual funds. The original is the Invesco S&P 500 Equal Weight ETF (RSP), which turned 20 years old in April. Invesco expects the ETF industry's smart beta assets under management to hit a milestone of $1 trillion by the end of this year.

etf.com spoke with Invesco’s Head of ETFs John Hoffman at the etf.com Awards ceremony in May, who said smart beta is still in the “early days.”

Smart beta is “providing an index methodology, better exposure and more precision,” he said.

Sean Allocca is the former Editor-in-Chief of etf.com. Prior to etf.com, he was deputy managing editor at InvestmentNews, an editor for Financial Planning, and an editor for CFO Magazine. He holds a B.A. in writing from Loyola University, Maryland and an M.A. in communication from Fordham University.