The smart beta and factor landscape has exploded in recent years. Academics have identified an ever-expanding list of equity factors that may explain excess returns when applied to broad systematic portfolios, and exchange-traded fund (ETF) providers have launched a variety of strategies that seek to harness and package them. But how can investors gauge whether these strategies, and the factors underlying them, make economic sense and are positioned to produce results over time?

In this Q&A, PIMCO equity strategist Raji Manasseh and Research Affiliates product specialist Brent Leadbetter discuss the process behind factor selection and portfolio construction for the PIMCO RAFI Dynamic Multi-Factor ETFs and the inputs informing factor weightings.

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The Author

Raji O. Manasseh

Equity Strategist

Brent Leadbetter

Product Specialist, Research Affiliates

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Past performance is not a guarantee or a reliable indicator of future results.

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Smart beta refers to a benchmark designed to deliver a better risk and return trade-off than conventional market cap weighted indices.

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CMR2021-0506-1638626

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