Hottest Smart Beta ETFs This Year

June 26, 2017

Most Popular Multifactor ETFs

First Trust Nasdaq Bank ETF (FTXO)

This ETF has year-to-date net creations of $1.00 billion. It isn’t the first ETF you think of when you think of multifactor funds. But that goes to show just how diverse the smart-beta segment is, and just how broad its reach is within equity funds.

In the case of FTXO, which is a banking ETF, the fund picks stocks based on liquidity and weights them based on several factors including volatility, value and growth—hence, its multifactor makeup. FTXO is still a newcomer to the space, having launched in September 2016. It has an expense ratio of 0.60%.

Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC)

GSLC has net creations so far in 2017 of $721 million. It is one of the most popular multifactor ETFs on the market today, with $2.26 billion in assets gathered in less than two years.

The fund is a truly multifactor approach to the U.S. large-cap space, tracking an index that comprises value, quality, momentum and low-volatility factors, each equal-weighted in the final mix. What’s also unique about this ETF is how cheap it is for a multifactor fund. Its expense ratio is just 0.09%. 

 

 

Most Popular Dividend ETF

iShares International Select Dividend ETF (IDV)

This fund has year-to-date net inflows of $769 million. It is a classic dividend fund, tracking a dividend-weighted index of 100 of the highest-yielding securities found in developed markets outside the U.S.

IDV essentially selects stocks based on their dividends and weights them by their dividends in a tiered system. The U.K. and Australia are the fund’s biggest country allocations. This ETF has $4.35 billion in AUM and has an expense ratio of 0.50%. 

 

Charts courtesy of StockCharts.com

Contact Cinthia Murphy at [email protected]

 

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