▁is ▁a ▁response ▁to ▁a ▁question ▁that ▁forms ▁the ▁basis ▁of ▁M PT ▁- ▁how ▁to ▁best ▁construct ▁the ▁optim ally ▁divers ified ▁port folio . ▁Sm art ▁beta ▁answers ▁this ▁by ▁allowing ▁a ▁port folio ▁to ▁expand ▁on ▁the ▁efficient ▁front ier ▁( post - cost ) ▁of ▁active ▁and ▁pass ive . ▁As ▁a ▁typical ▁invest or ▁own s ▁both ▁the ▁active ▁and ▁index ▁fund , ▁most ▁would ▁benefit ▁from ▁adding ▁smart ▁beta ▁expos ure ▁to ▁their ▁port folio ▁in ▁addition ▁to ▁their ▁existing ▁alloc ations . ▁ ▁Dem and ▁for ▁smart ▁beta ▁ ▁Sm art ▁beta ▁strateg ies ▁have ▁generated ▁considerable ▁interest ▁from ▁institution al ▁invest ors ▁in ▁the ▁w ake ▁of ▁the ▁ 2 0 0 8 ▁financial ▁crisis . ▁According ▁to ▁E TF . com , ▁as ▁of ▁April ▁ 2 0 1 9 ▁there ▁was ▁approximately ▁$ 8 8 0 ▁billion ▁inv ested ▁in ▁smart ▁beta ▁funds . ▁The ▁increase ▁in ▁demand ▁has ▁led ▁to ▁an ▁increase ▁in ▁the ▁number ▁of ▁products ▁and ▁there ▁are ▁more ▁than ▁ 1 0 0 0 ▁smart ▁beta ▁E TF s ▁on ▁the ▁market ▁today . ▁The ▁demand / g row th ▁does ▁not ▁appear ▁to ▁be ▁slow ing ▁down ; ▁in ▁the ▁ 1 2 - month ▁period ▁ending ▁February ▁ 2 0 1 9 ▁ 7 7 ▁new ▁smart ▁beta ▁E TF s ▁launched ▁account ing ▁for ▁roughly ▁ 1 / 3 ▁of ▁all ▁E TF s ▁launched ▁in ▁the ▁ 1 2 ▁month ▁period . ▁ ▁Product ▁landscape