Smart beta strategies are moderate-risk smallcases that are made up of the top 150 stocks by market cap. These strategies aim to increase the return potential without increasing risk.
They take the same amount of risk as the benchmark indices but increase the return potential by using better screening or weighting criteria.
They are the perfect way to create long term wealth through equities.
There are 3 types of smart beta strategies:
- Low Risk - Smart Beta
- Dividend - Smart Beta
- Quality - Smart Beta