smart beta

noun

smart beta

noun

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

Business, Finance 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.

Entry derived from the Wiktionary, under licence CC BY-SA 4.0 — list of authors.