Envestnet | PMC Unveils Strategic Beta ETF Ranking Methodology

CHICAGO, June 5, 2017

"Our new strategic beta ETF ranking methodology has been thoughtfully developed to provide advisors and home offices with a way to assess the relative merits of strategic beta ETFs," said Janis Zvingelis, PhD, Director of Quantitative Research at Envestnet | PMC. "This framework is a valuable addition to PMC's stable of quantitative ranking methodologies."

The new evaluation process analyzes strategic beta ETFs according to cost, liquidity, and performance. When reviewing performance, the members of QRG track a strategic beta ETF's risk-adjusted return as well as its exposure to its respective risk factor, such as value, momentum, quality, size, or market. The group also checks to make sure the risk factor driving an ETF's strategy is justified by academic research. PMC's list of approved strategic beta ETFs that meet its evaluation criteria is updated and offered on a quarterly basis to reflect the more active investment approach of these investment vehicles. More information is available at: http://www.investpmc.com/insights/quantitative-research/.   

"Factor-based investing—including 'smart' or 'strategic' beta—has long-standing and deep roots in academic and industry research," said Brandon Thomas, Chief Investment Officer of Envestnet | PMC. "We are firm believers that factor-driven investing can potentially produce superior results for clients, and we are glad to offer research-based quantitative guidance for advisors and investors who are eager to reap the benefits of factor-driven investment strategies." 

QRG supports PMC's fiduciary offering in several meaningful ways, including through development of the platform's core investment assumptions, consulting services, exploratory research, and asset management. Among QRG's responsibilities are the development of the firm's capital markets assumptions and Q-Score methodologies, and the construction and portfolio management of PMC's lineup of Quantitative Portfolios (QPs).

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