Bottomline Up FrontInvestors are probably unaware of the price they are paying for the "active" piece of Smart Beta.
Using a simple framework, we show that buying a Smart Beta product at 45bps is equivalent to paying 5bps for a generic passive exposure and 138.33 bps for the active exposure!
How many investors are aware that "low-cost" smart ...
- Gray, Vogel, and Xu
- A version of the paper can be found here.
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