smart beta

noun

A portfolio management strategy that modifies the beta, that is the exposure to systematic risk in the market, based on widely recognized valuation rules from technical analysis rather than market capitalization.

Similar
traditional betafactor investing
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Meanings

nounsmart beta (plural smart betas)

plural smart betas

  1. businessA portfolio management strategy that modifies the beta, that is the exposure to systematic risk in the market, based on widely recognized valuation rules from technical analysis rather than market capitalization.

    Synonyms: traditional beta, factor investing

Synonyms & antonyms

nounA portfolio management strategy that modifies the beta, that is the exposure to systematic risk in the market, based on widely recognized valuation rules from technical analysis rather than market capitalization.

Similar
traditional betafactor investing

Origin

Coined around 2006 by consultants at Willis Towers Watson, though the academic research is decades older.

Full word history & related roots →
Cite this entry
APA

smart beta. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/smart%20beta

MLA

“smart beta.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/smart%20beta. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “smart beta,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/smart%20beta.

Source: smart beta on Wiktionary, CC BY-SA 4.0.