@article {Berger116, author = {Adam Berger and Conor McCarthy}, title = {The Last Smart Beta Paper You{\textquoteright}ll Ever (Have to) Read: Nuggets of Hope beneath the Hype }, volume = {7}, number = {1}, pages = {116--123}, year = {2016}, doi = {10.3905/jii.2016.7.1.116}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The hype surrounding smart beta is drowning out valuable insights for improving investment outcomes. The core idea of smart beta{\textemdash}that factors independent of market direction are sources of sustainable and diversifying returns{\textemdash}is foremost among those insights. Unfortunately, the key selling points of most smart beta products{\textemdash}simplicity, transparency, and static implementation{\textemdash}actually make factor-based investing less effective. Smart beta also tends to be long only, equity focused, and single factor. The most promising forms of factor-based investing move beyond one or more of these constraints. In this article, the authors offer a {\textquotedblleft}buyer{\textquoteright}s guide{\textquotedblright} for linking factor-driven strategies to investors{\textquoteright} long-term objectives{\textemdash}one that may not mean {\textquotedblleft}buying{\textquotedblright} any of the products on offer today.TOPICS: Analysis of individual factors/risk premia, portfolio construction}, issn = {2154-7238}, URL = {https://jii.pm-research.com/content/7/1/116}, eprint = {https://jii.pm-research.com/content/7/1/116.full.pdf}, journal = {The Journal of Beta Investment Strategies} }