Trends in Factor-Based Investing

The video discusses smart beta, a strategy that combines elements of passive and active investing. It highlights low volatility ETFs, like SPLV, which focus on less volatile stocks to provide diversification and manage risk, especially for retirees. The video emphasizes the importance of diversification and the long-term benefits of low volatility ETFs, which rebalance quarterly to capture risk premiums. It also touches on market trends and the role of defensive sectors in a low-rate environment.

What is smart beta and how does it differ from traditional passive investing?

What are the three reasons for building the product mentioned in the text?

How does the SPLV ETF aim to manage longevity risk for investors?

What role does diversification play in the context of low volatility ETFs?

What are the expected benefits of rebalancing the ETF quarterly?