Skip to content
Subscriber Only
Barry Ritholtz

Masters in Business: Rob Arnott

Rob Arnott turned the world of passive index investing upside down. Listen to the interview.

Rob Arnott turned the world of passive index investing upside down. He is best known for creating indexes that aren't weighted along traditional methods of market capitalization. Rather, he looks at fundamentals such as sales, profits, book value and dividends to weigh a company relative to the economy.

This approach has come to be called "smart beta." Funds running Arnott's models manage almost $200 billion, and assets in smart-beta strategies increased by 59 percent last year. Rob Arnott is chairman and chief executive officer at Research Affiliates and author of "The Fundamental Index: A Better Way to Invest." Listen to the full interview with Arnott here.