Outsmart The New Strategic ETFs

Low volume. Quality. Momentum. No, these are not the names of latest K-pop albums. These are themes based on which investment products are now being rolled out, thanks to the current craze for indexing. With old-style index products almost fading from the scene, the time for newbie strategies seems to have truly arrived. Smarter categories of index funds and exchange- traded funds (ETFs) appear to have found takers from among younger investors. The scenario is set to evolve further, a trend already evident from the new fund proposals the asset management industry is lining up. Many of the draft offer documents are for ETFs. Strategic indices are clearly the rage. Some of them are thematic—a feature that the new-generation allocators seem to accept. Their choice is reflected in the contemporary preference for passive investing strategies (compared to active ones), courtesy ETFs....