%0 Journal Article %A Noël Amenc %A Felix Goltz %A Ashish Lodh %A Lionel Martellini %A Barbara J. Mack %T Practical Applications of Towards Smart Equity Factor Indices: Harvesting Risk Premia without Taking Unrewarded Risks %D 2015 %R 10.3905/pa.2015.3.sb.001 %J Practical Applications %P 1-5 %V 3 %N SB %X Towards Smart Equity Factor Indices: Harvesting Risk Premia without Taking Unrewarded Risks Noël Amenc Felix Goltz Ashish Lodh Lionel Martellini Well over 30% of investment professionals use products involving smart-beta indices, but the existing crop of products meant to address the well-recognized shortcomings of cap-weighted indices fail to do the trick.Although risk-based and factor-based smart-beta strategies are pitched as a way to avoid undesirable factor exposures and heavy concentrations, most of the current products do not meet that goal, according to Noël Amenc , Felix Goltz , Ashish Lodh and Lionel Martellini .In Towards Smart Equity Factor Indices: Harvesting Risk Premia without Taking Unrewarded Risks , Amenc, Goltz, Lodh and Martellini of ERI Scientific Beta and EDHEC Risk Institute offer a new approach. That is, smart-factor indices that provide exposure to a rewarded factor while diversifying away unrewarded risks. %U https://pa.pm-research.com/content/iijpracapp/3/SB/1.1.full.pdf