Recently, the debate on passive versus active fund management has been a major focus on
the Swedish capital market. Passive management is gaining more and more market shares.
However, theories and previous research show that Smart Beta strategies outperform their
passive benchmark index. The Smart Beta strategy is described as a hybrid between active
and passive fund management, where it takes advantage of the low management cost of
passive fund management and active fund management’s ability to select. This study
presents three new Smart Beta strategies based on the key ratios ROA, profit margin and
The purpose of the study is to investigate whether any of the three Smart Beta portfolios
can perform better than the Swedish market based on OMXS30 from a risk-adjusted
Previous studies have shown that Smart Beta portfolios outperform their benchmark index.
However, this study's contributing key figures show no excess return for the investigated
period on the Swedish stock market.
|Date of Award||2020-Sep-16|
|Supervisor||Martin Abrahamsson (Supervisor) & Zahida Sarwary (Examiner)|
- Degree of Bachelor of Science in Business and Economics
Courses and Subjects
- Banking and financing
- 15 HE credits
Swedish Standard Keywords
- Business Administration (50202)
- smart beta
- passive versus active management
- index funds