Research-led and experience-driven, our team brings practical expertise to delivering the best of smart beta strategy design and execution.
Experience 25 Yrs
Delivering Precision Smart Beta
Smart Beta Assets Under Management *
Portfolio Managers 15+
Dedicated To Smart Beta
Target the Real Drivers of Return
Smart beta can help investors target better risk-adjusted returns and capture excess performance in a more cost-effective way.
Discover more about the smart beta factors that drive returns:
Value stocks have been shown to outperform the broader market indices over the long term. These results have been replicated by a number of researchers for many different sample periods and for most stock markets around the world.
Smaller capitalization companies have tended to outperform larger capitalization companies over the long term. Similar to the value effect, the size effect has been reproduced for numerous sample periods and for most major securities markets around the world.
Creating a portfolio with lower volatility ortilting towards lower risk stocks tends to generate a higher risk-adjusted return than traditional financial theory would suggest.
Investing in higher-quality companies has been shown to deliver greater downside protection, so, in down markets their stock price is less impacted than the overall market.
Market efficiency proponents believe that stock prices have no memory BUT empirical evidence shows something else: Many stocks that have done well recently tend to carry on doing well in the near term. The momentum smart beta factor aims to capture this.
The sixth smart beta factor? We don’t consider ESG to strictly be a smart beta factor however we do see it increasingly being used alongside smart beta factors as a powerful complement for risk reduction.
Smart Beta Strategies
We can help you with factor guidance or deconstructing your portfolio to assess which factors are contributing return. From bespoke indices, custom-tilted or multifactor approaches, access to commercial products or the very latest ETFs, we can help you leverage the benefits of smart beta in your portfolio.
Extensive research has shown that factors drive returns. In fact, between 50% and 80% of a portfolio’s excess return can be attributed to exposure to specific factors, such as low volatility or size.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.