Smart Beta

Academic Research Produces About Three to Five Good Ideas Every 20 Years


In a recent article by Ron Rimkus, CFA he asked Nobel Laureate Eugene Fama some questions regarding investing. Eugene Fama said to stick with the basic factors. 

 "One of the problems with the financial industry today," Fama lamented, "is that academic research produces about three to five good ideas every 20 years. However, the financial industry packages and sells about 10 new ideas per week." The industry has clearly begun to embrace passively managed index funds and such factor-based products as smart beta. 


To read the full article click here:


Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail


The views, opinion, information and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. The selection of any posts or articles should not be regarded as an explicit or implicit endorsement or recommendation of any such posts or articles, or services provided or referenced and statements made by the authors of such posts or articles. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting or tax advice.