As you consider migrating your public equity holdings away
from traditional active management to smart beta, two portfolio construction questions come to the fore: which smart beta strategies should you include, and how should you manage those strategy allocations through time?
In this way, they're different
from traditional active management in which a portfolio manager makes individual stock buy - and - sell decisions.
Not exact matches
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from Active / Passive: Indexing still on top, but active management plays role Why traditional investment strategies don't work I am a lazy, cheap inv
Active / Passive: Indexing still on top, but
active management plays role Why traditional investment strategies don't work I am a lazy, cheap inv
active management plays role Why
traditional investment strategies don't work I am a lazy, cheap investor.
Our methodology effectively splits the
traditional alpha resulting
from active management into two parts: the theme picking part (also called a directional bet) and the individual security selection part.
Withdrawal of brokerage firms
from the equity research business + downward pressure on fees + investor reallocation toward index investing have made
traditional active management considerably less lucrative than it was during my working career.
[Contining movement of assets
from funds to ETFs] helps explain recent moves by
traditional asset
management companies to acquire ETF - focused firms specializing in the construction of low - cost,
active indexing portfolios: