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Smart beta is the overnight success that took decades to arrive

Smart beta is today’s buzzword but there’s over half a century of thinking behind it

Today’s alternative indices or “smart beta” strategies are a far cry from Charles Dow’s humble Dow Jones Industrial Average index.

Yet smart beta indices, a term consultancy Towers Watson is widely credited with coining in the mid-2000s, are the most recent step in the evolution of the products. And strategies based on them are attracting new assets at a clip.

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