smart beta

English dictionary entry

Meanings

noun
  1. A portfolio management strategy that modifies the beta, that is the exposure to systematic risk in the market, based on widely recognized valuation rules from technical analysis rather than market capitalization.

Word forms

smart beta smart betas

Etymology

Coined around 2006 by consultants at Willis Towers Watson, though the academic research is decades older.

Synonyms

traditional beta factor investing
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