Legg Mason launched its suite of smart-beta ETFs at the end of December, right before the market sank into turmoil. Michael LaBella, portfolio manager at QS Investors, said the timing was smart indeed. ‘These strategies are really designed to help clients tackle market volatility and that is certainly what we launched into,’ said LaBella. The Legg Mason U.S. Diversified Core ETF (UDBI), down 3% thus far in 2016, tackles diversification across industries in order to prevent a single sector from overwhelming the performance of the entire fund. ‘We know that some sectors of the S&P 500 can be highly concentrated, using financials as an example which cover a big portion of it,’ said LaBella.
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