Edhec’s smart beta indices top $8 billion

IndicesAssets tracking smart beta indices offered by Edhec-Risk Institute, an academic organisation, have topped $8 billion (€7.4 billion).

The institute, which is part of Edhec Business School based in Nice, France, says its indices have seen triple-figure growth over the past year.

Edhec offers over 2,000 indices through its ERI Scientific Beta venture.

The first iteration of its indices, known as Smart Beta 1.0, returned 2.1% performance over more than five years.

Edhec hopes its “Smart Beta 2.0” offering will surpass $12 billion in assets tracking its indices.

Noël Amenc, chief executive of ERI Scientific Beta, says: “Smart beta is a commoditisation of two essential contributions from modern portfolio and asset pricing theory, namely allocating to factors that are well rewarded over the long term, and reducing unrewarded risks through diversification.

These two ingredients are the core of Smart Beta 2.0.

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