Vanguard's Jack Bogle Warns Smart Beta May Be Over-Promising
- Citigroup estimates Smart Beta assets to hit $1.2 trillion
- Says financial services ‘suffering’ from too much innovation
Jack Bogle
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Jack Bogle, the founder of Vanguard Group Inc., has warned against the dangers of allocating money to smart beta funds, saying he’s wary of new financial instruments that haven’t been tested by a big shock in the market.
“Smart beta is the big new thing,” Bogle said via satellite at a London Business School event with the AQR Asset Management Institute. “I wouldn’t quite say it was stupid, but it makes claims that are beyond its ability to fill.”