PT - JOURNAL ARTICLE AU - Eugene Podkaminer TI - Smart Beta is the Gateway Drug to Risk Factor Investing AID - 10.3905/jpm.2017.43.5.130 DP - 2017 Mar 31 TA - The Journal of Portfolio Management PG - 130--134 VI - 43 IP - 5 4099 - https://pm-research.com/content/43/5/130.short 4100 - https://pm-research.com/content/43/5/130.full AB - The most common strategies using risk factor approaches are found on the opposite ends of the complexity spectrum: simple, long-only equity factor strategies (i.e., smart beta) and multiasset class long/short risk premia approaches that often employ leverage and derivatives. The space between these two poles is just starting to be explored, as risk factors become a more common feature of both portfolio attribution and portfolio construction. Today’s simple factor smart beta portfolios can be extended across multiple asset classes, coupled with shorting, in order to approach a diluted risk premia approach.TOPICS: Analysis of individual factors/risk premia, style investing, risk management