Most major indexes like the S&P 500 and the Russell 1000 Index<\/a> are market-cap weighted, with the largest companies having the largest weight index. Smart beta employs strategies that include equal weighting, fundamental weighting, minimum variance, and low volatility.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Why Do Investors Choose Smart Beta ETFs?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Investors may not consider over or underweighting stocks in a portfolio as the best strategy. They may prefer an ETF that weighs both small-cap and large-cap stocks equally or an ETF that follows a low-volatility strategy. Both investments contain a basket of individual securities such as stock or bonds. However, mutual fund<\/a> orders are executed once per day and all investors receive the same price at the end of the day. ETFs trade like stocks and are bought and sold on a stock exchange and experience price fluctuations throughout the trading day.
<\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is the Difference Between an ETF and a Mutual Fund?",
"acceptedAnswer": {
"@type": "Answer",
"text": "
<\/p>"
}
}
]
} ] }
]