RT Journal Article SR Electronic T1 Practical Applications of Towards Smart Equity Factor Indices: Harvesting Risk Premia without Taking Unrewarded Risks JF Practical Applications FD Institutional Investor Journals SP 1 OP 5 DO 10.3905/pa.2015.3.sb.001 VO 3 IS SB A1 Noël Amenc A1 Felix Goltz A1 Ashish Lodh A1 Lionel Martellini A1 Barbara J. Mack YR 2015 UL https://pm-research.com/content/3/SB/1.1.abstract AB 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.