Smart-Beta ETFs Hit $500 Billion

Smart-Beta ETFs Hit $500 Billion

Assessment

Interactive Video

Business

University

Hard

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The video tutorial explains the concept of smart beta, which is a variation of market cap weighted indices like the S&P, weighted by factors such as dividends or momentum. Smart beta aims to combine the benefits of active management strategies with the low cost and efficiency of ETFs. It addresses the drawbacks of active mutual funds, such as high costs and human error, by packaging these strategies in an ETF wrapper. The video also highlights the growth and popularity of smart beta ETFs, which have seen significant asset inflows and are attracting interest from active mutual fund managers. Performance trends, such as the shift towards value ETFs, are also discussed.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary goal of smart beta strategies?

To replicate market cap weighted indices

To enhance traditional active mutual funds

To increase the cost of investment

To introduce more human judgment in investing

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key advantage of smart beta ETFs over active mutual funds?

Lower costs and reduced human error

Increased human judgment

More frequent rebalancing

Higher capital gains

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do smart beta ETFs differ from traditional passive ETFs?

They focus solely on technology stocks

They are less diversified

They aim to outperform the market

They are more expensive

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been a significant trend in smart beta ETFs recently?

An increase in value-oriented investments

A focus on low volatility

A shift towards technology stocks

A decrease in financial sector exposure

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sectors are value ETFs typically overweight in?

Technology and healthcare

Energy and real estate

Financials and industrials

Consumer goods and utilities