Smart Beta: how B Capital is playing China

So we look principally at the risk of the instrument. Most asset classes are investable but the question is really what are you trying to track with the ETF? If the underlying sector within an asset class is illiquid or hard to price intraday then it won’t make sense to track it with an ETF.

The right filters in an investment process would very quickly highlight potential problems. Think ‘liquidity, transparency and control’ as the mantra for better ETF investing and if you don’t understand it, don’t invest.