Why Smart Beta Is Still in ‘Early Days’

May 17, 2023

Reviewed by: Lisa Barr

Edited by: Sean Allocca

Smart beta ETFs have emerged as a popular investment option for investors looking for other options besides traditional passive index or actively managed mutual funds. The original is the Invesco S&P 500 Equal Weight ETF (RSP), which turned 20 years old in April. Invesco expects the ETF industry's smart beta assets under management to hit a milestone of $1 trillion by the end of this year.

etf.com spoke with Invesco’s Head of ETFs John Hoffman at the etf.com Awards ceremony in May, who said smart beta is still in the “early days.”

Smart beta is “providing an index methodology, better exposure and more precision,” he said.

Sean Allocca

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Sean Allocca is Editor-in-Chief of etf.com, overseeing the company’s content strategy and long-term editorial goals. Previously, he was deputy managing editor at InvestmentNews. Allocca was also an editor for the wealth management publication Financial Planning, and editor of CFO magazine. He has a B.A. in writing from Loyola University, Maryland and an M.A. in communication from Fordham University.

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