Given an uncertain economic environment, a lot of investors are opting for something called ‘smart beta funds’. Smart beta is an investment strategy that is being touted as the next big thing in investing. Essentially an alternative to ‘active’ and ‘passive’ investment strategies, they give their investors the opportunity to get above average returns without paying too much fees or taking any extra risks.

There’s been an explosion of smart beta exchange funds in the United States with hundreds of billions of dollars in assets under management as of May 2015. It’s all quite complicated but let this video from Financial Times explain whether investing in ‘smart beta’ or ‘strategic beta’ funds is a wise thing to do:


Here’s one more in case the last one didn’t quite clear things up: