| Goldman Sachs's first exchange-traded fund is also the latest attempt to kill the term “smart beta.” One of the most controversial marketing buzz phrases ever created in finance, smart beta has become an annoying pest that won’t go away. Few can define it, and even fewer like it. Many harbor pure hatred for it. William Sharpe has said it makes him “definitionally sick.” And don’t even ask John Bogle what he thinks of it.
Smart beta is a viral term used to describe any ETF that purposely deviates from market return by tilting the portfolio toward a factor or strategy that has a proven historical record of outperforming, such as dividends, value, low volatility, momentum, or a combination thereof...............................................Full Article: Source
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