PT  - JOURNAL ARTICLE
AU  - Rob Arnott
AU  - Katrina Sherrerd
TI  - Jack Bogle and Smart Beta: Disruption in the Investment Management Industry
AID  - 10.3905/jbis.2022.13.1.028
DP  - 2022 Mar 09
TA  - The Journal of Beta Investment Strategies
PG  - 28--37
VI  - 13
IP  - 1
4099  - https://pm-research.com/content/13/1/28.short
4100  - https://pm-research.com/content/13/1/28.full
AB  - Jack Bogle, an ardent advocate of low-cost investing, transformed the investment industry in the mid-1970s with the first Vanguard index mutual fund that offered retail investors the opportunity to own the equity market (or at least the 500 companies in the S&P 500 Index) via a transparent, low-governance, high-capacity investment vehicle. Jack’s consistent message over the decades of the futility of trying to beat the market—and therefore the wisdom of cap-weighting—popularized the concept of separating alpha from beta. Without this bifurcation, the smart beta revolution might never have happened. In this article, Rob Arnott and Katy Sherrerd trace the evolution of beta investing from the launch of the Fundamental Index concept that motivated the term smart beta to the much broader beta investing landscape of today. They conclude with four actionable principles for investing in smart beta strategies.