The Smart Beta Channel

A Bit About Bob

Our CEO is Robert Huebscher, but we know and love him as “Bob.” We would like you to get to know him, so this section is dedicated to updates and facts about Bob! Did you know that Bob went fly fishing this weekend?

Hotchkis & Wiley: Exploiting the Inefficiencies in Small-Cap Stocks

Judd Peters is a portfolio manager of the Hotchkis & Wiley Small Cap Diversified Value Fund (HWVIX). Since its inception, the fund’s annualized return has been 9.45%, resulting in a 254 basis point outperformance versus Russell 2000 Value Index. The fund is rated five stars by Morningstar. I interviewed Judd last week.

Building a Better U.S. Economy

This shouldn’t surprise anyone, but public trust in the federal government is eroding. Sixty years ago, 75 percent of Americans expressed faith in the government to do the right thing “most of the time” or “just about always.” Seventy-five percent! You can’t get 75 percent of people to agree on anything now, as the recent “Laurel or Yanny” video proved.

ECRI Weekly Leading Index Update

This morning's release of the publicly available data from ECRI puts its Weekly Leading Index (WLI) at 148.5, down 0.2 from the previous week. Year-over-year the four-week moving average of the indicator is now at 3.34%, down from 3.80% last week. The WLI Growth indicator is now at 3.5, down from the previous week.

Michigan Consumer Sentiment: May Final Slips Slightly

The University of Michigan Final Consumer Sentiment for May came in at 98.0, down 0.8 from the April Final reading. Investing.com had forecast 98.8.

Geopolitics Update: Trade War, Tariffs & the Coming Tech Implosion

As the Trump administration’s on-again, off-again trade war with China continues to create uncertainty for investors, we sat down with geopolitical strategist Peter Zeihan to learn more about the tariff program and what it could mean for the US economy.

Beyond the FAANGs: Technology Stocks and Downside Protection

Technology stocks are widely seen as powerful return drivers—with a lot of volatility attached. But surprisingly, shares of many companies that enable the technology revolution can provide solid returns and even downside protection.

‘Simplification Day’ for Oil & Gas MLPs: What Investors Need to Know

We believe the news is evidence of a broader shift toward simpler corporate structures in the midstream energy sector – a trend that supports our investment approach and our constructive view of the sector.

Have You Noticed That Many Dividend Stocks are Finally in a Bear Market? General Mills Inc.: Part 1

For quite some time I have been complaining that most best-of-breed dividend growth stocks were overvalued. Frankly, for the most part I continue to hold that opinion. On the other hand, I am also starting to see what I’ll call a stealth bear market for many dividend growth stocks.

Schwab Market Perspective: Buy in May…and Stay?

Stocks have rebounded along with economic data, could we be setting up for a solid summer?

Food for Thought: Integrating vs. Mixing

Although a naïve comparison appears to favor the integrating approach to multi-factor strategy construction, after taking into account both quantitative and qualitative considerations, many investors—those seeking transparency, diversification, minimal governance oversight, and low fees—may find mixing is a more sensible choice.

The Madness of Crowding Out

Public debt may be growing at the expense of private debt, the Chinese bond market is opening up, and important dates for tariffs are fast approaching.

New Highs In The A-D Line and the Small Cap Index Are Not Necessarily Bullish

The conventional wisdom is that "healthy breadth" is necessarily bullish. This sounds intuitively correct: a broader foundation - where more stocks are ticking higher - should equal a more solid market, but it is empirically false.

The Fundamentals of RAE: Seeking Value Beyond Borders

It may be time for U.S. investors to challenge their home-country equity biases.

US Economic Growth: A Sustainability Story?

US stocks have boomed for nine years, supported by one of the longest economic expansions in the postwar period. Can this growth be sustained? Much depends on how the challenges of environmental and social sustainability are addressed.