5 Core Smart Beta ETFs You Need in Your Portfolio

As more investors realize the power of indexing and its effects on long-term returns, more are choosing smart beta ETFs for their portfolios. By screening for various fundamental factors, smart beta indexes hope to overcome many of the issues with traditional market-cap weighting techniques. These include large-cap biases and owning “bad” stocks. Yet, while smart beta continues to grow in popularity, most investors are using the ETFs as satellite positions or as a way to supplement a traditional indexed portfolio. But with the proliferation of new smart beta ETFs, you can build a successful core portfolio with them exclusively, covering a full range of asset classes. And with returns on many smart beta indexes slightly outperforming regular ones over the long term, there’s plenty of incentive to do just that. Here’s ETFdb’s Smart Beta Core Portfolio.