Welcome to the World of Smart Beta ETFs!

Introduction

Are you tired of traditional investment strategies and looking for something new and exciting? Well, look no further because smart beta exchange traded funds (ETFs) might just be the answer you’ve been searching for! Making its debut on 02/03/2015, the ProShares Russell 2000 Dividend Growers ETF (SMDV) is shaking up the investment world with its unique approach to investing.

What is Smart Beta?

Before we dive into the specifics of the SMDV ETF, let’s take a step back and understand what smart beta actually means. Smart beta strategies aim to combine the best of both active and passive investing by using a rules-based approach to create a diversified portfolio that tilts towards certain factors such as value, size, or momentum.

SMDV ETF Overview

The ProShares Russell 2000 Dividend Growers ETF (SMDV) is designed to provide investors with broad exposure to the Style Box – Small Cap Value category of the market. This means that the ETF focuses on small-cap companies that are considered undervalued based on certain criteria such as dividend growth.

By investing in SMDV, investors can potentially benefit from the dividends paid by these small-cap value companies while also gaining exposure to the growth potential of this segment of the market.

How Does This Affect Me?

As an individual investor, investing in the SMDV ETF can provide you with diversification benefits and the potential for long-term growth. By gaining exposure to small-cap value companies, you can take advantage of their potential for outperformance compared to larger, more established companies.

How Does This Affect the World?

On a larger scale, the introduction of smart beta ETFs like SMDV is changing the way investors approach their investment strategies. By incorporating factors such as value and size into their portfolios, investors are able to take a more targeted and systematic approach to investing, potentially leading to more efficient markets.

Conclusion

In conclusion, the ProShares Russell 2000 Dividend Growers ETF (SMDV) is a prime example of the exciting opportunities that smart beta ETFs bring to the table. Whether you’re looking to diversify your portfolio or tap into the growth potential of small-cap value companies, SMDV offers a unique investment opportunity that is worth considering. So why not take a leap into the world of smart beta investing and see where it takes you!