Strategic-beta ETFs: Wisdom or madness?

Carefully consider these four questions before making your choice.

Paul Kaplan 2 May, 2016 | 5:00PM

Does the popularity of strategic beta ETFs reflect the "wisdom of crowds" or the "madness of crowds?"

Despite the popularity of strategic beta ETFs (or perhaps because of it), Vanguard founder and fund industry legend John Bogle has this to say about strategic beta:

"Smart beta is stupid; there's no such thing. It's an idiotic phrase. Quoting Shakespeare, I guess: It's a tale told by an idiot, full of sound and fury, signifying nothing" (as quoted in a 2015 Institutional Investor article). 

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About Author

Paul Kaplan

Paul Kaplan  Paul Kaplan is Director of Research for Morningstar Canada.