alternative beta

Forms of alternative beta

Origin of alternative beta

Actually a quarter of a decade older than the marketing-like smart beta, though of course thereafter compared to this term, building on 1990s research into hedge fund exposures. The first exchange-traded funds with such factors became investable in the mid-2010s, which necessarily combines active with passive management elements, given its definition of avoiding index risk.

Questions about alternative beta

What does alternative beta mean?

Alternative beta means a portfolio management strategy that seeks to avoid sensitivity to systematic risk of the market by adding other (although diversified) systematic market factors than those having known correlations to the chart, exploiting mispricing understood as behavioral effects, risk premiums, illiquidity, currency risks, interest risks, liability risks, regulatory risks, demographic risks, war risks etc.

What part of speech is alternative beta?

Alternative beta is a noun.

What is the plural of alternative beta?

The plural of alternative beta is alternative betas.