So, just how smart is "smart-beta." The industry's smart-alecs are trying to decide.
For example, a Wall Street Journal
article quotes Research Affiliates
founder Rob Arnott
as saying that smart beta "lacks theoretical rigor."
However, Arnott quickly follows up in his quote by adding "That said, it's a fun term." His firm
does use smart beta in it marketing and drills down on the concept on its website.
columnist Brendan Conway scrutinizes the higher risks, and purportedly higher returns
promised by the concept.
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