What are Smart Beta ETFs?
For those who are new to Smart Beta ETFs, essentially Smart Beta ETFs are really anything that isn’t solely market-cap weighted. Instead, Smart Beta EFTs are weighted by Value, Growth, Dividend, Volatility, Size, etc. Smart Beta ETFs are also another way to package active management by putting it into a rules-based engine, while striping out the capital gains and high fees.
Best Smart Beta ETFs for 2018
We are in a historically low period for volatility, which hurts active management and Smart Beta. I think 2018 is the year for Smart Beta EFTs to come into their own and make a bigger splash. Below is my list of the 10 best Smart Beta ETFs for 2018. All of these ETFs have an expense ration under 0.50%.
- Vanguard Small-Cap Value ETF (VBR)
- BlackRock iShares Edge MSCI Min Vol USA ETF (USMV)
- BlackRock iShares Russell 2000 Value ETF (IWN)
- Vanguard High Dividend Yield ETF (VYM)
- Guggenheim S&P SmallCap 600 Pure Growth ETF (RZG)
- SPDR Portfolio S&P 500 Growth ETF (SPYG)
- Schwab Fundamental Emerging Markets Large Co. Index ETF (FNDE)
- SPDR NYSE Technology ETF (XNTK)
- BlackRock iShares S&P Small-Cap 600 Value ETF (IJS)
- SPDR S&P Emerging Markets Dividend ETF (EDIV)