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Smart Beta

Also called: Strategic beta

What is smart beta?

Smart beta, also known as strategic beta, is an investment strategy that gets concentrated exposure to investment factors like momentum and quality.

Investors looking to mitigate investment risk, or beta, may consider investing in a factor-based investment strategy. Common strategic funds screen for low-volatility, high-quality, and high-yield funds. These funds can be actively or passively managed and exist as a mutual fund or an ETF.