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Regression Analysis To Tell You What Factors Are At Work Not all funds 'capture' the factor in fact some capture something else or a lot of the beta.  Its hard telling whats what.  Here we have a good look at regression analysis to decipher what is true factor premium and what is, well, randomness.  Its an interesting subject and one that I hope to cover thoroughly here. http://seekingalpha.com/article/4012925-smart-beta-strategy-job The Hidden Weaknesses Of Index Funds. If you read my post Investors…
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This Week In Smart Beta 10.08.2016

Posted on: 09.10.2016
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Gregg Fisher On Meb Faber's Podcast I'll just say it out Meb summarizes it on his site: "if you're a factor investor this episode is for you". http://mebfaber.com/2016/10/05/podcast-23-gregg-fisher-sometimes-best-investment-strategy-isnt-right-investment-strategy/ Larry Swedroe On Diversification and Factor Investing Swedroe takes a quantitative look at the under and out performance of factors over time, particularly small cap value.  We all know that no factor works 100% of the time, but his data tables reveal many interesting take aways with numbers.  He concludes that investors need…
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Smart Beta Doesn't Mean Smart Investor Patick O'Shaugnessy expressed some criticism at the Morningstar ETF Invest Conference a couple weeks back. He's a firm believer in factor alpha  and believes that too many Smart Beta ETfs are just  basically, funds with a tilt and too many holdings.   He also feels that ETFs are conducive to trading like stock thus highlighting another behavioral issue with investors.  I agree with him on this point and I admit to looking at my…
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BlackRock’s Ang On The Next Frontier in Factor Investing ETF.com has been on a kick of interviewing speakers of the Inside Smart Beta conference, which just happened over the last 2 days.  In this interview they have Dr. Andrew Ang, head of factor investing strategies at blackrock.  He touches on many aspects of Smart Beta such as, Smart Beta in fixed income (bonds), the lack of correlation between, the need for investors to stay persistent with their Smart Beta strategies, and how Smart Beta ETFs now put…
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