FYI: wo Ph.D.s at BlackRock, Ronald Kahn and Michael Lemmon, have published an article that predicts continued success for strategic-beta funds (to use Morningstar's marketing-shorn phrase for what the authors call "smart beta"--that is, the approach of investing mechanically but selectively, by using an system that buys only securities that have certain features (i.e. factor exposures, or betas). Examples would be a fund that buys only low-volatility issues, or one that holds stocks that have low price ratios and high recent price momentum.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=744946
