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Index IDEA: Breakfast of champions

As FTSE Russell launched its second smart beta index survey of financial advisors earlier this week at #InsideETFs, the global index provider also hosted a special panel discussion – Breakfast of Champions – hosted by Rolf Agather and including special guests from leading ETF providers and investment mangers O’Shares, Schwab, Oppenheimer Funds and Franklin Templeton.

FTSE Russell’s financial advisor survey has indicated growing use of smart beta investment strategies, reinforced by the fact that 75% of the Monday panel attendees said they are currently using smart beta strategies in their investment portfolios in an instantaneous poll.

The FTSE Russell survey also indicated remaining gaps in education on smart beta indexes, which the panel was designed to help address through a variety of unique perspectives:

Kevin O’Leary, O’Shares ETF Chairman, ABC’s Shark Tank Investor:

“Like a balanced diet, balancing one’s investment portfolio requires a disciplined approach combining elements of sector weighting, stock selection and fundamental risk analysis. A rules-based index approach can help implement a desired investment approach with the discipline of a consistent methodology to keep you diversified with less risk.”

Tony Davidow, Alternative Beta & Asset Allocation Strategist, Schwab Center for Financial Research:

“Our proprietary research has shown us that a ‘balanced breakfast’ combining fundamental and market-cap indexing provides diversification and potential for alpha in a cost-effective manner.”

David Mazza, Head of ETF Investment Strategy, Oppenheimer Funds:

“Pursuing a diversified diet of investments based on factor exposures can be a prudent approach for investors. And, like a nutritionist, a rules-based process can help investors dynamically adjust exposure across these factors based on macroeconomic conditions and market sentiment which evolve over time.”

Pierre Caramazza, SVP, Head of ETF Distribution, Franklin Templeton Investments:

“Investments based on market cap weighted indexes, smart beta and actively managed strategies can be essential building blocks for investor portfolios. These approaches can be used to pursue both core and tactical objectives.”

Get more information on ETFs based on indexes from FTSE Russell.



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Views expressed by Kevin O’Leary, Tony Davidow, David Mazza, Pierre Caramazza are as of January 22 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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