Has Smart Beta Stalled?

Market share gains by “Smart Beta” ETFs appear to have all but stalled last year. By our calculations, assets under management (AUM) grew by just one half of one percentage point to 28.8% of all equity ETFs, excluding leveraged and inverse funds. Back at the end of 2010, smart beta funds had a market share of 18.3% of AUM (Figure 1). Our…