Smart Bata Is A Market Cap Weighted Index - 1621 Words

So, just because S P or MSCI has decided that it is going to be market cap weighted, or something like that, maybe we deem, whoever we are, deem that to be arbitrary and affective, and there is a better way to understand what the market is doing. In particular, this has given rise to all of these. SO, that is what smart bata is; smart bata is coming up with a better index. So, bata is market exposure, smart means that we don’t like the naà ¯ve index, or the market cap weighted index, we want to come up with a better way. So, despite the bad name and all of the bad marks that it gets, there is some rational underpinnings to all of this that does make sense to me. If you are forcing yourself to invest passively, then lest invest passively, even better. So, what people have been doing is investing in, or one methodology, with the advent of the notion, not just of quality as an investment attribute, but maybe there are a lot of other attributes that can be isolated. All of the things that we have talked about, quality, valuation, growth, volatility, and size. So, rather than me buy induces or ETF products, that have a combination of all of these, these, kind of an indiscriminate combination, I am actually going 9o buy discreet product. I am going to buy a quality index, I am going to buy a valuation index, I am going to buy one where these are isolated factor indices, or isolated factor silos, which again, we can build those things, and we do. I think, there is a massive