Evolution of Indexing. Are you smarter about ‘smart beta’ ETFs?

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Smart beta ETFs. Alternatively-weighted ETFs. Indexing 2.0. Whatever you want to call this trend in exchange-traded funds, it’s attracting more investor dollars.

Overall, Morningstar slaps its “strategic beta” label on more than 340 ETFs that together have attracted more than $310 billion in assets. The entire U.S. ETF industry consists of about 1,600 products with $1.7 trillion in assets, so strategic beta has 18% of the asset pie.

If the SPY makes you feel like you’re getting a ride from a teen who’s had one too many energy drinks, then you might like SPLV. It aims to deliver a less choppy ride for risk-averse investors, as it tracks an index comprised of the 100 least-volatile S&P 500 stocks.

http://www.marketwatch.com/story/4-charts-to-make-you-smarter-about-smart-beta-etfs-2014-04-08

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