Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JBIS
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Index Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Index Investing

The Journal of Index Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JBIS
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Implementing Smart Beta Strategies in a Globalized World: The Importance of Regions and Sectors

Edward N.W. Aw, Sanjun Chen, Blanca Misrahi and Gregory Y. Sivin
The Journal of Beta Investment Strategies Spring 2018, 8 (4) 32-46; DOI: https://doi.org/10.3905/jii.2018.8.4.032
Edward N.W. Aw
is head of quantitative strategies at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Sanjun Chen
is a senior quantitative analyst at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Blanca Misrahi
is a quantitative associate at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Gregory Y. Sivin
is a senior quantitative analyst at Bessemer Trust in New York, NY
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

The importance of region and sector selection has been a topic of discussion in the academic and investment communities. Some have argued that sector importance should generally be greater than region as the world’s economies have become globalized. In this study, we examined the impact of globalization on global equity investors by evaluating the importance of regions and sectors. In particular, should smart beta investors implement strategies intraregion or intrasector? Applying the globalization index equation to the global equity universe with a minimum market capitalization of $250 million, we found that most sectors are not global—that is, regional influence is larger than the sector effect. However, more sectors are becoming global. Segregating the global equity universe into 10 regions, we found that 7 of the 10 sectors are more regional in nature. The remaining 3 sectors are more global in nature. Using the cumulative sum technique, designed to detect small changes in a data series, we found that all 7 of the sectors determined to be regional have been showing a trend toward globalization since the end of the 20th century.

TOPICS: Portfolio construction, analysis of individual factors/risk premia, global

  • © 2018 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Index Investing: 8 (4)
The Journal of Beta Investment Strategies
Vol. 8, Issue 4
Spring 2018
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Index Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Implementing Smart Beta Strategies in a Globalized World: The Importance of Regions and Sectors
(Your Name) has sent you a message from The Journal of Index Investing
(Your Name) thought you would like to see the The Journal of Index Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Implementing Smart Beta Strategies in a Globalized World: The Importance of Regions and Sectors
Edward N.W. Aw, Sanjun Chen, Blanca Misrahi, Gregory Y. Sivin
The Journal of Beta Investment Strategies Feb 2018, 8 (4) 32-46; DOI: 10.3905/jii.2018.8.4.032

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Implementing Smart Beta Strategies in a Globalized World: The Importance of Regions and Sectors
Edward N.W. Aw, Sanjun Chen, Blanca Misrahi, Gregory Y. Sivin
The Journal of Beta Investment Strategies Feb 2018, 8 (4) 32-46; DOI: 10.3905/jii.2018.8.4.032
del.icio.us logo Digg logo Reddit logo Twitter logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • DATA
    • RESEARCH AND DESIGN
    • EMPIRICAL RESULTS
    • CONCLUSION
    • APPENDIX A
    • APPENDIX B
    • APPENDIX C
    • APPENDIX D
    • APPENDIX E
    • ENDNOTE
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Sign In
  • Update your profile
  • Give us your feedback

© 2022 Pageant Media Ltd | All Rights Reserved | ISSN: 2154-7238 | E-ISSN: 2374-135X

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Cookies