Best New Smart Beta ETF in Europe – 2016
Awarded to the most important new ETF launched in 2016, regardless of asset class, that uses a quantitative, research-driven approach to attempt to deliver superior long term risk adjusted returns. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognise ETFs that open new areas of the market, lower costs, drive risk adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after 1 January, 2016, are eligible. ETF must be classified as a smart beta strategy by FactSet to qualify. (Note: Despite the FactSet categorization, currency-hedged exposures do not qualify.)
- The db X-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF
Emerging market debt is exciting, but how do you avoid EM bonds that are in trouble? This new DB product applies fundamental analysis to the emerging markets space in an effort to sidestep bonds prior to a downgrade.
- iShares Edge MSCI USA Value Factor UCITS ETF
This ETF stormed out of the gate, ending the year with more than £150 million in assets under management despite launching in October. The fund holds broad based exposure to stocks that are undervalued relative to their fundamentals. Its index handily outperformed the S&P 500 in 2016.
- J.P. Lyxor J.P. Morgan Multi-Factor Europe Index UCITS ETF
This unique ETF leverages a basket of five different factors (value, low size, momentum, low beta and quality) in an effort to deliver consistent outperformance to investors. It’s a key example of the rising use of multi instead of single factor exposure.
- Lyxor FTSE All World Minimum Variance UCITS ETF
The Lyxor FTSE All World Minimum Variance UCITS ETF is a global ETF covering almost 2,000 stocks that seeks to keep investors in the market while protecting against significant downside exposure. With the Brexit, Frexit, Trump and more on investors’ minds, that could be a very appealing offering. And with a cost of just 0.30%, the fee is right too.
- PowerShares FTSE UK High Dividend Low Volatility UCITS ETF
The PowerShares FTSE UK High Dividend Low Volatility UCITS ETF aims to provide investors with exposure to high yielding stocks without the volatility that can accompany that investment. Why have just one factor when you can have exposure to two?
- Source FTSE RAFI Europe Equity Income Physical ETF
This new ETF won plaudits for its well researched, disciplined approach to generating returns in risk-off environments.