Smart beta

Factor-based approaches to index investing have won heaps of investment. Can it last?

The seven funds are expected to begin trading in the first quarter.

A recent launch from Flat Rock is designed to provide access to middle-market debt in a new way, according to the firm’s CEO, Robert Grunewald.

These all-weather investments could be just the ticket for clients.

Oct. 9: High distribution cost is just one obstacle managers face when delivering on innovation, says Flat Rock CEO Robert Grunewald.

Most of the firm’s reticence has come down to a marketing debate.

The company is evaluating ways to package both its quantitative and active strategies into the funds, according to a person familiar with the matter.

Above all others, millennials are likely to include the funds in their portfolios, Schwab says.

To encourage a budding relationship with younger clients, firms must provide new offerings and more guidance about how to invest, Schwab says.

Despite having “exaggerated” merits, most strategic-beta ETPs outperformed their replicating portfolios, according to Morningstar.

The firm plans to charge nine basis points for exposure to a basket of large-cap stocks, lower than any other comparable offering.

In addition to launching new smart beta funds, the firm may look to expand into “a whole host of different asset classes,” according to one executive.

New bond ETFs from the firm use alternative weightings to chase "superior risk adjusted and total returns” compared with market-cap weighted products.

The company made reductions by as much as 20 basis points at the offerings, which total about $204 million in assets.

The firm said they now have lower net expenses than comparable offerings at Vanguard.

Fundamental indexing is drawing more scrutiny, and greater concern about how these indexes are assembled.

Aside from stocks, strong and consistent trends have been hard to come by this year.

The new job will focus on middle-office services like hedge funds, software solutions and the firm’s message and connectivity engine.

The issue comes to down whether the strategy is good at picking stocks primed to rise.

Many new products are great for the industry and not so great for our clients.