If you are looking for a low-vol, value or momentum portfolio, use this fund screener.
Invest according to a formula that weights stock positions in a certain way. Beat the market, or maybe reduce your risk, or increase your dividend income, or maybe do all three. Sounds great, doesn’t it?
Investors have $870 billion in what Morningstar calls “strategic beta” funds, “beta” being jargon for stock-market risk. These funds, passive index funds for the most part, have positions that veer off the usual market-capitalization weights. Instead, they lean toward stocks with particular attributes or “factors,” like recent price momentum or low volatility.
If you want to join this crowd, get a cost-efficient product. This guide to smart beta zeroes in on 12 low-cost mutual funds and 69 low-cost exchange-traded funds.
The two tables below can be sorted for screening. You can sort, for example, by portfolio average market cap, which would be useful if you want a small-company fund. You can sort by expense ratio or portfolio objective or fund size. The tickers link to Morningstar pages with considerably more detail.
Following the tables is a discussion of what a factor fund is supposed to accomplish. Study it before you make a decision. Note: High-income stock funds are covered in a separate report: Guide to Dividend Funds For Retirees: 36 Best Buys.
Source: Morningstar Direct
If you are sure you want to own an index fund with special portfolio weights, these tables will steer you to the best deal. But maybe you aren’t sure. There are two questions to ask: What are you trying to achieve? What makes you think you will achieve it?
One reasonable objective is to increase your income from an equity portfolio by selecting for high dividends. If that’s your smart-beta target, find