For once, both active and passive managers may not be happy with a mainstream article on the benefits of indexing.

In this case, Joe Light of the Wall Street Journal reports on the rise of so-called "smart beta" ETFs that use fundamentally- or factor-weighted indexes instead of traditional market capitalization-weighted ones. Referencing Burton Malkiel's criticism of active management, the WSJ questions traditional indexing, too.

"It turns out that a blindfolded, dart-throwing monkey beats a regular market-capitalization-weighted index, too," the WSJ writes.

The article includes shout-outs to PowerShares [profile], QuantShares, Research Affiliates, Schwab [profile] and Vanguard [profile]. Yet one big fundamental indexer, WisdomTree [profile], goes unmentioned. 

Edited by: Neil Anderson, Managing Editor


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