News | 05.10.19
A Popular, Low-Risk Investment Product Is Losing Its Luster as New Launches Slow Down
The popularity of smart beta products may have peaked, Morningstar analyst Ben Johnson said at the company's annual investment conference. Between 2000 and 2018, smart beta assets under management expanded to nearly $800 billion from less than $10 billion. Their market share among exchange-traded products also surged to around 20 percent during that period. Market share has stabilized since 2015, while the number of new launches dropped to 59 in 2018 from 85 the year before. Johnson said increasing pressure to lower fees could be one of the factors keeping new strategic beta products from launching.
Read the full article on CNBC