STRATEGIES

Smart beta

Platform

Smart beta is a transparent and rules-based style of investing that seeks to improve returns, reduce risks, and enhance diversification by providing exposure to systematic investment factors. By rewriting index rules, Smart Beta strategies seek to isolate or combine factors to create deliberate, diversified outcomes that traditional cap-weighted index investing may not be able to achieve.

BlackRock manages $185 billion* in Smart Beta strategies across equities, fixed income, and commodities, and continues to innovate within the category, leveraging a factor-based view of the world to approach the investment challenges of our clients.

Principles

  • Pioneer in factor-based Investing: BlackRock leverages decades of expertise in research and implementation of Smart Beta solutions, including 30+ years of experience in systematic investing and 40+ years of managing passive strategies.*
  • Dedicated resources: BlackRock’s focused Factors research team taps into the company's global platform of systematic investors across equities, fixed income and multi-asset groups. The dedicated strategy team partners with clients to aid in allocation decisions and the design of bespoke strategies.
  • Continuous focus on innovation: BlackRock is at the forefront of the next generation of Smart Beta products, technology, and capabilities, creating specialized, innovative investments across asset classes.
  • Efficient implementation: BlackRock's skill and ingenuity in managing index-tracking strategies can help investors tailor their portfolios while seeking to meet their needs and pursue consistent outcomes. In addition, we believe BlackRock's trading platform and scale helps to minimize transaction costs, source liquidity, and deliver best execution.

*as of May 31, 2018 Includes predecessor firms.

Types of Strategies

BlackRock's Smart Beta platform provides comprehensive exposure across asset classes and vehicle offerings.
Equities
Minimum volatility
Factor strategies
Multi-factor
Fundamentally-weighted
Income
Fixed Income
Credit screened
Sovereign screened
Fixed income balanced risk
Commodities
Commodities plus

Leadership

Sara Shores, CFA
Global Head of Investment Strategy for Risk Factor Strategies