Most of us agree that smart beta ETF is stupid. However there are sectors in the investment world that has shown to have long term outperformance to the index. These include small caps, value stocks, equal weight etc. From the data by William Bernstein it seems like small cap value has shown to give the highest return albeit with the highest volatility. If you have a 30 year+ horizon and can stick to your guns then you are likely to outperform. My question is whether these ETF counts as “smart beta”, and how much outperformance is left when tax considerations and higher fees are involved. I wanted to see how many people tilt their portfolio to these specific sectors, and any discussion is appreciated. Of course one does not need to tilt their portfolio to these sectors to achieve a good return, but I am interested in the thoughts of those that do. I guess the next question is whether these tilts need to be global, Australia or US based to achieve enough diversification. I am interested to hear what products you use. I did not include growth as most people already own a cap weighted ETF which comprises mainly of growth companies.