I found this podcast by Barry Ritholtz to be excellent… Here is a summary:
”This week, we chat with Rob Arnott, the founder and chairman of Research Affiliates (RAFI). The firm’s intellectual property drives the management of over $200 billion in portfolios. Arnott is credited for creating fundamental indexing, better known as Smart Beta. He has published more than 100 articles in journals such as the Journal of Portfolio Management, Harvard Business Review, and the Financial Analysts Journal, where he also served as editor in chief from 2002 through 2006.
Rather than assembling an index by its market capitalization, fundamental indexing uses other metrics such as earnings, dividend yield or book value. The concept is still a passively managed fund, but one that does not get wildly over-weight certain names. The idea was pioneered by Rob Arnott of Research Affiliates (RAFI).
Arnott explains why smart beta is a superior form of index construction of stock picking active management, and provides a chance to outperform versus traditional indexing.”
The link: http://ritholtz.com/2018/07/mib-rob-arnott-research-affiliates/
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