Understanding Smart Beta Sources Of Return

Understanding Smart Beta Sources Of Return by Sara Shores, CFA, BlackRock

Sara Shores explores where smart beta may make sense in a portfolio by looking at various sources of portfolio return and how this strategy can be used to complement index and active strategies.

If you’re familiar with smart beta basics but are curious to learn more about how this particular strategy fits into a portfolio, let’s take a look at return. We like to think of return of any portfolio as the result of the investments held within it. Many investors look at the total return of an investment fund compared to its benchmark. This helps us to figure out if the manager is doing well or subpar compared...