When it comes to investing money, most people want to be smart about it. So an increasingly popular strategy with smart in its name has intrigued certain investors, while turning off others who see it as little more than a marketing gimmick.

I’m talking about so-called smart beta strategies. Many different strategies fall under this label, but what unites them is their rejection of market capitalization — the value of a company’s publicly traded stock — as a benchmark for creating a passive investment fund. A fund based on the Standard & Poor’s 500-stock index, for instance, is a passive fund that uses market capitalization.

via ‘Smart Beta’ Investing Lets the Yardstick Pick the Stocks – NYTimes.com.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.