PIMCO RAFI Dynamic Multi-Factor ETFs: Innovation in Smart Beta

The smart beta and factor landscape has exploded in recent years. Academics have identified an ever-expanding list of equity factors that may explain excess returns when applied to broad systematic portfolios, and exchange-traded fund (ETF) providers have launched a variety of strategies that seek to harness and package them. But how can investors gauge whether these strategies, and the factors underlying them, make economic sense and are positioned to produce results over time?