One ETF Making the Case Against the S&P 500

The video discusses investment strategies focusing on diversification through low correlation stocks and ESG screening. It compares the performance of ETFs with the S&P 500 and critiques the latter's lack of diversification. The concept of smart beta is explored, highlighting its advantages over traditional cap-weighted portfolios. Alternative strategies like anti-benchmarking are also discussed, emphasizing their role in portfolio construction.

What is the primary goal of using low correlation stocks in a portfolio?

• To increase the overall risk

• To achieve maximum diversification

• To focus on a single industry

• To reduce the number of stocks

Why does the ETF discussed have a higher fee compared to others?

• It has a lower tracking error

• It offers less diversification

• It has a high tracking error and diversification potential

• It focuses solely on technology stocks

What is a key criticism of the S&P 500 according to the transcript?

• It is too diversified

• It is not popular among investors

• It is heavily concentrated in certain sectors

• It has no historical performance

What does the term 'dumb beta' refer to in the context of the transcript?

• A method to increase fees

• A focus on past performance as an indicator of future success

• A way to reduce portfolio risk

• A strategy that predicts future returns

What is the advantage of the anti-benchmark strategy mentioned?

• It has no tracking error

• It is constrained by the S&P 500

• It allows for unconstrained active share

• It focuses only on emerging markets