BNP AM

The sustainable investor for a changing world

Smart Beta

Smart beta strategies have expanded rapidly in recent years in equities and are also gaining ground in other asset classes such as bonds and commodities. This is no fad, but rather a new investment approach.

A diversified offering based on a systematic investment process embedded in a transparent index methodology.

The term ‘smart beta’ refers to indices for which the selection process and the weighting of individual securities may be based on specific criteria (valuation, volatility, dividends…) which set them apart from traditional market cap indices for instance.

Key factors

Smart Beta

These indices are calculated and published by Solactive AG.

The BNP Paribas Smart Beta ETF range is divided into two categories:

  • « Factor investing by BNP Paribas»
  • « Other Smart Beta strategies. »

Factor investing by BNP Paribas

This includes ETFs replicating indices that are following a factor approach based on academic research and on the expertise of the financial engineering teams of BNP Paribas.
These indices seek to identify real and recurring sources of performance and transform them into easily exploitable investment factors.

Other Smart-beta strategies

This comprises smart-beta ETFs replicating indices that are based either on specific themes such as dividends or have been developed with external BNP Paribas partners.

    The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance. Investing in emerging markets, or specialised or restricted sectors, is likely to be subject to a higher-than-average volatility due to a high degree of concentration, to greater uncertainty because less information and/or less liquidity is available or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.