Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Smart Beta'
Beta is the sensitivity of a portfolio to the return of the market. Smart Beta strategies are supposed to earn a higher return than the market. A Smart Beta fund usually tracks a style index. Investment Companies that promote this type of fund usually have higher costs and higher risk than comparable beta only index funds.