Etfdb logo

Quick. Name the hottest trend in exchange-traded funds (ETFs) these days? There’s a good chance you said smart-beta or fundamental ETFs.

And you’d be right. With investors looking to be better than “average,” the use of alternative indexing has exploded in recent years. The vast bulk of new ETFs launched have all sought to exploit various factors or differences in indexing to beat the market. Some of the hottest ETFs have looked to specifically target known factors – with momentum, quality, value and size being the biggest recipients of investors’ cash.

But there is another “factor” that many investors are ignoring and that could lead to outsized returns. And that’s “liquidity.”

The liquidity factor is often tucked under the rug when it comes to smart-beta ETFs. However, it’s equally as important to portfolios and could represent an additional chance for outperformance.

Sign up for ETFdb.com Pro and get access to real-time ratings on over 1,900 U.S.-listed ETFs.

To read the Full Story, Start All Access Pass or Log In

Popular Articles

News

ETF Scorecard: January 18 Edition

To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a...

PRO Commodity%20asset%20allocatio
News

Can Commodities ETFs Be the Answer to Diversification?

They say, the only free lunch in investing is diversification. The idea is that by pairing...

News

Trending: Investors Turn to Dividend Aristocrats Amid Market Volatility

Dividend investing is back in fashion as wild price swings in the stock market and prolonged...