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Arnott on the Key to Smart Beta

Breaking the link between price and portfolio weighting is why smart beta strategies outperform cap-weighted methods, says Research Affiliates' Rob Arnott.

Ben Johnson: It's been a number of years now since the first ETFs based on RAFI indices really launched, and it seems that only recently has the concept of fundamental indexing really come into its own and entered the mainstream.

Rob Arnott: That's been so exciting.