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← Smart Beta and Factor ETFs
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Question
What distinguishes a "smart beta" or factor ETF from a traditional cap-weighted index fund?
1
Factor ETFs track a broader universe of stocks than cap-weighted funds
2
Factor ETFs weight stocks by characteristics like valuation or momentum rather than market capitalisation
3
Factor ETFs are actively managed by professional stock-pickers
4
Factor ETFs avoid investing in large-cap stocks entirely
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