While these companies tend to have non-cyclical earnings streams that grow modestly, their newfound role as a substitute for bonds in many retirees’ portfolios has pushed their prices to levels typically reserved for high-growth businesses. With companies such as Clorox and Pepsico now trading at price-to-earnings multiples of 25 or higher, it calls into question their starring role in many minimum volatility EFTs.

The conference ended with Reggie Browne, senior managing director of Cantor Fitzgerald’s ETF group, and Gary Stringer, president and chief investment officer of Stringer Asset Management, discussing asset allocation strategies and smart beta.

Given that many smart beta funds have value tilts, attendees talked about how long growth could continue to outperform value as the seven-year bull market grows increasingly long in the tooth. More than a few advisors and financial professionals think 2016 could be the year when growth ETFs slow down and their value counterparts catch up. 

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