Alternative Betas For Equity Investors.

Investments in equities is more than a binary choice between active and passive.

“There is a third option for investors who wish to allocate to equities—non-price-weighted strategy indexes, which offer an alternative and complementary choice. Since the publication of “Fundamental Indexation” in the Financial Analysts Journal,  many asset managers and indexers have created a dizzying array of “alternative betas” or “strategy indexes” designed to offer investors passive investment vehicles that are grounded in the hypothesis of market inefficiency. “

Our conclusion:   Nobody wants to buy new highs.

But relative strength strategies are delivering excellent results.

Dorsey Wright Money Management has more about this in

Investment Return Factors and Momentum Over Multiple Cycles.

Advisors Perspectives article is here.