The ETF is based on a Multi Factor Smart Beta framework that take the four factors (Value, Mid-Cap, Low-Vol and Momentum) as proxied by their indices through five different weighting schemes producing four Multi-Strategy Sub-Indices. These indices are subsequently equal weighted producing a Multi Beta, Multi Strategy Index that serves as the underlying for the MS Scientific Beta Global Equity Factors UCITS ETF
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Morgan Stanley Scientific Beta Global Equity Factors UCITS Fund is an exchange-traded fund incorporated in Ireland. The Fund's objective is to provide Shareholders with a return equivalent to the performance of the Scientific Beta Developed Multi-Beta Multi-Strategy Equal-Weight Index, denominated in USD (the Index) before all fees.
The objective of the Scientific Beta Developed Multi-Beta Multi-Strategy Equal-Weight Index is to represent the performance of large and mid capitalisation companies from developed economies while outperforming the Developed Scientific Beta Cap-Weighted Reference Index.
Multi-Beta Multi-Strategy indices provide allocations to several well-documented risk premia in equity markets (Value, Momentum, Size, Low Volatility) which follow different cycles.