In the first half of 2016, investors in Europe have poured in $5.7bn (€5.1bn) into smart beta funds as market capitalisation index trackers saw outflows over the period, according to Morningstar data analysed by ETF provider WisdomTree Europe. Brexit could be one of the reasons for the switch.
Index-tracking products continued to rise in popularity in 2015. According to data collated by research consultancy ETFGI, ETFs listed in Europe gathered a record amount of new assets in 2015.
European-listed ETFs and ETP assets reached a record high at the end of August of $477.4bn, according to ETFGI.
As alternative beta products become available to smaller investors, what are the potential benefits and pitfalls of the approach? By Will Jackson