Smart beta strategies are captivating more investors than ever before
Schwab asked 1,500 ETF investors about their attitudes and expected behavior when it comes to smart beta investing.
Source: Focus on Smart Beta--2018 ETF Investor Study, Charles Schwab & Co., Inc., 2018.Smart beta perception
Investors increasingly see smart beta ETFs as a valuable tool for reaching investment goals:
And in 2018, the younger the ETF investor, the more likely they were to see smart beta ETFs as a valuable tool:
-
63%
Millennials
-
57%
Gen X
-
40%
Boomers
-
27%
Matures
Smart beta adoption
Investor adoption of smart beta strategies has significantly accelerated in the last three years:
Among ETF investors, Millennials more than any other generation are now invested in smart beta strategies:
-
67%
Millennials
-
49%
Gen X
-
13%
Boomers
-
14%
Matures
Market volatility
ETF investors say they are more interested in exploring smart beta ETFs during periods of market volatility, especially younger generations:
-
92%
Millennials
-
81%
Gen X
-
53%
Boomers
-
33%
Matures
Smart beta and investor decisions
Among ETF investors who say they currently invest in smart beta strategies:
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75% have swapped active exposures for smart beta exposures in the last three years.
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54% view smart beta ETFs as a complement to market-cap-weight ETFs.
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68% plan to increase smart beta investments in the next year.
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34% invest in Fundamental Index® strategies.
Celebrating a fundamentally different approach to investing

Investors have embraced the six Schwab Fundamental Index ETFs since their launch in August 2013:
- $17B+ in Fundamental Index ETF AUM1
- Ranked #4 in strategic beta inflows YTD2
1. Data as of 9/30/2018. Source: Charles Schwab Investment Management, Inc.
2. Data as of 9/30/2018. Source: Strategic Insight Simfund®, using Morningstar’s strategic beta classifications 6/30/2018.