It's the New Smart Beta Craze, But BlackRock's Not Convinced

Oppenheimer joins Pimco in listing dynamic multifactor ETFs
BlackRock says it’s sticking to single factor funds in 2018

A monitor displays BlackRock Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Jan. 17, 2017. U.S. stocks fell as markets reopened after Monday's holiday as financial and health-care shares declined and the U.S. dollar headed for the biggest single-day loss since July.Photographer: Bloomberg/Bloomberg

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By Carolina Wilson

November 10, 2017 at 11:00 AM UTC

Updated on

November 10, 2017 at 2:33 PM UTC

This article is for subscribers only.

A new smart beta trend is kicking off, but for once you won’t find BlackRock Inc. leading the pack.

The world’s biggest money manager, whose iShares exchange-traded funds are the gateway drug for many into the world of smart beta, is calling “too soon” on the latest version of these strategies, known as dynamic multifactor.