Envestnet | PMC Unveils Strategic Beta ETF Ranking Methodology

Firm’s Quantitative Research Group to Offer List of Approved Strategic Beta ETFs that Meet its Evaluation Criteria on a Quarterly Basis

CHICAGO—June 5, 2017—Envestnet | PMC, the Portfolio Management Consultants group of Envestnet, Inc. (NYSE: ENV), has introduced a new quantitative approval process for evaluating strategic beta exchange-traded funds (ETFs). The methodology for evaluating these products has been developed by PMC’s Quantitative Research Group (QRG).

“Our new strategic beta ETF ranking methodology has been thoughtfully developed to provide advisors and home offices with a way to assess the relative merits of strategic beta ETFs,” said Janis Zvingelis, PhD, Director of Quantitative Research at Envestnet | PMC. “This framework is a valuable addition to PMC’s stable of quantitative ranking methodologies.”

The new evaluation process analyzes strategic beta ETFs according to cost, liquidity, and performance. When reviewing performance, the members of QRG track a strategic beta ETF’s risk-adjusted return as well as its exposure to its respective risk factor, such as value, momentum, quality, size, or market. The group also checks to make sure the risk factor driving an ETF’s strategy is justified by academic research. PMC’s list of approved strategic beta ETFs that meet its evaluation criteria is updated and offered on a quarterly basis to reflect the more active investment approach of these investment vehicles. More information is available at: http://www.investpmc.com/insights/quantitative-research/.   

“Factor-based investing—including ‘smart’ or ‘strategic’ beta—has long-standing and deep roots in academic and industry research,” said Brandon Thomas, Chief Investment Officer of Envestnet | PMC. “We are firm believers that factor-driven investing can potentially produce superior results for clients, and we are glad to offer research-based quantitative guidance for advisors and investors who are eager to reap the benefits of factor-driven investment strategies.” 

QRG supports PMC’s fiduciary offering in several meaningful ways, including through development of the platform’s core investment assumptions, consulting services, exploratory research, and asset management. Among QRG’s responsibilities are the development of the firm’s capital markets assumptions and Q-Score methodologies, and the construction and portfolio management of PMC’s lineup of Quantitative Portfolios (QPs).

About Envestnet
Envestnet, Inc. (NYSE: ENV) is the leading provider of intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.

Envestnet enables financial advisors to better manage client outcomes and strengthen their practices. Institutional-quality research and advanced portfolio solutions are provided through Envestnet | PMC, our Portfolio Management Consultants group. Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software for advisors. Envestnet | Retirement Solutions provides an integrated platform that combines leading practice management technology, research, data aggregation and fiduciary managed account solutions.

More than 55,000 advisors and 2,500 companies including: 16 of the 20 largest U.S. banks, 38 of the 50 largest wealth management and brokerage firms, over 500 of the largest Registered Investment Advisers, and hundreds of Internet services companies, leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences, and help drive better outcomes for enterprises, advisors, and their clients.

For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel.

Media Contact:
Dana Taormina
JConnelly for Envestnet | PMC
(973) 850-7305

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