TY - JOUR T1 - Practical Applications of Towards Smart Equity Factor Indices: <em>Harvesting Risk Premia without Taking Unrewarded Risks</em> JF - Practical Applications SP - 1 LP - 5 DO - 10.3905/pa.2015.3.sb.001 VL - 3 IS - SB AU - Noël Amenc AU - Felix Goltz AU - Ashish Lodh AU - Lionel Martellini A2 - Mack, Barbara J. Y1 - 2015/12/31 UR - https://pm-research.com/content/3/SB/1.1.abstract N2 - 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. ER -