Smart beta funds: The best of both worlds

Smart beta funds can give you the benefits of active management, but with much lower fees. David C Stevenson looks at four such funds.

Can you get the benefits of smart active management with the low fees of trackers? Now you can smart beta funds. Here are four to investigate.

One truth in investmentthat bears repeating is that not all shares are created equal. Mathematically orientated investors (known as quants)have long realised that certain types of stocks tend to outperform the overall market over time, and to beat benchmarks such as the FTSE 100 index.

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David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.