smart beta

English

Etymology

Coined around 2006 by consultants at Willis Towers Watson, though the academic research is decades older.

Noun

smart beta (plural smart betas)

  1. (finance) A portfolio management strategy that modifies the beta, that is the exposure to systematic risk in the market, based on widely recognized valuation rules from technical analysis rather than market capitalization.
    Synonyms: traditional beta, factor investing
    Coordinate term: alternative beta
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