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Index IDEA: US advisors go to school on smart beta

According to a recent FTSE Russell survey, US financial advisors are aware of the existence of smart beta index-based strategies, yet they are still unfamiliar with how smart beta works and are in need of much more education.

The 2018 FTSE Russell Advisor Smart Beta Survey expanded on the global index provider’s 2015 US advisor smart beta survey with input from 256 full-time, fee-based financial advisors and wealth managers divided almost equally between the US, UK and Canada.

Survey findings showed that, among financial advisors in the US, nearly eight in 10 (79%) are “aware” of smart beta, yet in this same group just one in three (35%) are “very familiar” with smart beta approaches.

Furthermore, when this group was asked what may be holding them back from using smart beta strategies, nearly half (47%) said they don’t know enough about them.  

Source: 2018 FTSE Russell Advisor Smart Beta Survey

Tom Goodwin, senior research director, FTSE Russell:

“Findings from our most recent survey show us that we have made strong progress as an industry in growing awareness around smart beta, but we clearly have further to go. We continue to see a need among our clients for more education, information and insight around smart beta and how it can play a role in client portfolios.”

Get more information on the FTSE Russell smart beta indexes.

 

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