Institutional investors in the United States report that they are increasingly using smart beta exchange-traded funds (ETFs), according to a new study.
The Cogent Research results show that more than half (53%) of institutional decision-makers will increase their use of smart beta ETFs over the next three years—higher than any other ETF category, including market cap-weighted ETFs (48%).
According to the study, larger institutions (those managing in excess of US$500 million in assets) are twice as likely to agree that smart beta ETFs provide better risk-adjusted returns relative to market cap-weighted ETFs, highlighting the focus on managing risk in today’s market.
Full research results will be released in the first quarter of 2014.
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