Smart beta gains traction
November 13, 2017

Invesco PowerShares, an exchange-traded funds (ETF) provider, has published its latest European smart beta survey (Smart Beta Strategies: More Bricks for Portfolio Building). Based on responses from 435 professional investors (institutional and intermediary/retail) in six European markets, its key findings include:

Users of smart beta products currently have 13 percent of their total assets invested in smart beta strategies, up from 8 percent last year, and expect to increase this to 23 percent over the next three years

A record number of investors would recommend smart beta products to colleagues and other investment professionals – 81 percent (compared to 73 percent in 2016). A record number of users say they are satisfied with smart beta products – 97 percent (compared to 96 percent in 2016 and 91 percent in 2015)

More than three quarters of respondents said they had experienced pressure to deliver portfolios that perform strongly in a shorter time frame and, as such, professional investors are increasingly turning to smart beta as an approach to achieving their clients' investment objectives

Momentum, quality and multi-factor strategies are booming, with usage of these three strategies almost doubling among retail professional investors from 2016 to 2017, for instance

Top three reasons for investing in smart beta: conviction in the selected strategy/ philosophy (48 percent); need for diversification (47 percent); and disappointing returns for active management (31 percent)

Most popular asset classes accessed via smart beta in 2017: European equity – cited by 65 percent of smart beta users; US large cap equity (51 percent); and domestic equity (40 percent).





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Invesco PowerShares, an exchange-traded funds (ETF) provider, has published its latest European smart beta survey (Smart Beta Strategies: More Bricks for Portfolio Building). Based on responses from 435 professional investors (institutional and intermediary/retail) in six European markets, its key findings include:

Users of smart beta products currently have 13 percent of their total assets invested in smart beta strategies, up from 8 percent last year, and expect to increase this to 23 percent over the next three years

A record number of investors would recommend smart beta products to colleagues and other investment professionals – 81 percent (compared to 73 percent in 2016). A record number of users say they are satisfied with smart beta products – 97 percent (compared to 96 percent in 2016 and 91 percent in 2015)

More than three quarters of respondents said they had experienced pressure to deliver portfolios that perform strongly in a shorter time frame and, as such, professional investors are increasingly turning to smart beta as an approach to achieving their clients' investment objectives

Momentum, quality and multi-factor strategies are booming, with usage of these three strategies almost doubling among retail professional investors from 2016 to 2017, for instance

Top three reasons for investing in smart beta: conviction in the selected strategy/ philosophy (48 percent); need for diversification (47 percent); and disappointing returns for active management (31 percent)

Most popular asset classes accessed via smart beta in 2017: European equity – cited by 65 percent of smart beta users; US large cap equity (51 percent); and domestic equity (40 percent).



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