At Morningstar Panel, “Smart Beta” Ripped Apart By Ferri

Richard Ferri Portfolio Solutions doesn’t like “smart beta” and he didn’t hold back in a Morningstar breakout session on the topic.

Richard Ferri doesn't know what smart beta is

“I don’t know what 'smart beta' is,” he said. “It’s a marketing phrase. I would be surprised if 10% of the people running around saying 'smart beta' even understand what beta is.” Beta investments, normally associated with market index investments which are typically tied to large market forces such as the S&P 500, are opposed to stock picking or investing using a unique stock selection methodology.

"Smart beta is...