Smart Beta Strategies Performance Report For Q1

Smart Beta Performance Report by Scientific Beta

Introduction

Recent years have seen the development of numerous smart beta indices whose weighting schemes differ from those of cap-weighted indices. Smart beta indices may be obtained by tilting economic factors, such as book-to-market, size or volatility, or by introducing greater diversification into the index, as illustrated in multi-strategy indices. The positive performance of smart beta indices over the long term has been largely documented in the literature. However, these indices are exposed to risk factors that are different from those of cap-weighted indices and that may cause variations in performance over short periods. As a result, the presentation of long-term performance is not enough for investors, who are also demanding performance...