As quantitative investment methods to solve risk management problems advance, ETFs, considered “passive” investment methods, are a focus for new tools. But are these new products based on valid and time tested investment principles or are they too complex with multiple opportunities for failure?
State Street Global Advisors developing a risk aware EFT might sound like a product that could have appeared in the Terminator movie series about self aware robots that make decisions in human-like fashion. But this ETF is based on a principle said to be utilized by many well known quantitative hedge funds: adjusting investing strategy based on market environment.


