What are smart beta index funds?

What are smart beta index funds?
- Pradeep

Smart beta index funds are modified index funds. With these funds, fund companies try to alter the index to make it smarter, as index funds are considered to be dumb. So, by deleting or knocking off something from the index based on a fundamental, technical or other filters, smart beta funds are expected to beat the index. Thus, these funds seek to enhance returns from the base index.

This article was originally published on October 01, 2019.