Traditional market cap or equal weight models

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Smart Beta ETF's are a growing segment of the fund industry. They are a hybrid between active and passive, generally have a large amount of holdings, and weight the holdings on other factors besides the traditional market cap or equal weight models. Essentially they are active factor betters. They bet on factors that academics have found value in, such as tilting toward value and small cap (Fama French Model). Please discuss the merits of this.

Reference no: EM132481803

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