According to Sébastien Denry, Investment Specialist ETF at THEAM, the Low Carbon 100 Europe THEAM Easy UCITS ETF tracker, created in 2008, provides immediate access to major European companies at the cutting edge of their sector in terms of reducing CO2 emissions.
Just about everyone from Warren Buffett on down to the casual investor is picking a side or
weighing in on the debate over passive vs. active investing. But it's not really an either/or
proposition. The better approach is to understand how to most effectively incorporate each of
these styles into creating a durable portfolio – because there are advantages to both.
Fitch Ratings warns of the temptation that fixed income fund managers may have in current market conditions to overreach for yield, potentially loosening credit selectivity and leading to excessive credit and liquidity risk-taking.
So what is “smart beta”? A mere revolt against traditional indices? No, Sir, it's a true revolution – the factor investing revolution. The questioning of allegiance to traditional indices, which until now were used broadly despite some serious drawbacks, has only just begun, but the stakes are already high and this could bring structural and long-lasting changes to the way investors make strategic allocations.
Performance drivers and risk factors are unstable parameters, at least in the short to mid-term. As a result, delivering returns over a relatively long horizon whilst avoiding transitory market shocks is no easy task for portfolio managers. While asset allocation is the main performance driver over long
periods, it is also the hardest to achieve.