Research Affiliates: "The Promise of Smart Beta"

The Promise of Smart Beta by Research Affiliates

In the latest piece from Research Affiliates, Jason Hsu, Co-Founder and Vice Chairman of Research Affiliates, provides his commitment and reasserts that of Research Affiliates to deliver on the promise of smart beta. Forty years ago, Jack Bogle helped revolutionize the industry for the benefit of the investor. Today there is opportunity for a second revolution—promising to bring the same low costs and high transparency to additional equity factors. Can smart beta break free from the conventional objectives of asset gathering and obfuscation, and deliver on that promise?

The Promise of Smart Beta

By the early 1970s, the finance literature had already documented that the average mutual fund consistently underperformed the...