Editorial: piecing together the smart beta puzzle
There must be a natural ceiling to the growth of products tied to smart beta indexes, but on the evidence of this year's Structured Products awards for the Americas, we haven't reached that stage yet
The growth in the number of products tied to smart beta indexes in recent years has been little short of phenomenal. Marketed to investors as a comfortable halfway house between active and passive management styles, their appeal has been fuelled by the twin drivers of low yields on passive investments and frustration at high fees – and frequently disappointing returns – on actively managed ones.
But is that growth beginning to top out? Steffen Scheuble, founder and chief executive of index
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