From Passive to Active? Smart Beta Takes Off

Smart beta exchange-traded funds (ETFs) have become extremely popular among investors looking for a combination of passive and active investments. According to BlackRock , this relatively new class of ETFs is expected to grow at a 20% annual pace from $282 billion to $1 trillion in assets under management by 2020. These growth rates would make smart beta ETFs a part of most investors’ portfolios, alongside passively and actively managed funds.