Best Smart Beta ETFs for 2018

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%.

  1. Vanguard Small-Cap Value ETF (VBR)
  2. BlackRock iShares Edge MSCI Min Vol USA ETF (USMV)
  3. BlackRock iShares Russell 2000 Value ETF (IWN)
  4. Vanguard High Dividend Yield ETF (VYM)
  5. Guggenheim S&P SmallCap 600 Pure Growth ETF (RZG)
  6. SPDR Portfolio S&P 500 Growth ETF (SPYG)
  7. Schwab Fundamental Emerging Markets Large Co. Index ETF (FNDE)
  8. SPDR NYSE Technology ETF (XNTK)
  9. BlackRock iShares S&P Small-Cap 600 Value ETF (IJS)
  10. SPDR S&P Emerging Markets Dividend ETF (EDIV)

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