Alpha vs beta investing recent market data shows alpha vs beta

Recent market data shows alpha vs beta investing strategies diverging as the S&P 500 gains 2.4% in the last month. Alpha-focused funds are capitalizing on tech sector momentum, while beta-driven ETFs reflect broader risk appetite, especially in growth-heavy indexes. Alpha is the return on an investment that’s incrementally more than a benchmark index such as the S&P 500 or another appropriate benchmark. Alpha is used as a yardstick when an investor chooses an active investment strategy , meaning they’re trying to outperform the market. So alpha is a way to measure how much extra juice a good investment manager can create above and beyond what a passive investor could achieve with no effort using an index fund. Benz: We wanted to switch over to discuss what you’re up to at your firm, AQR Capital Management. Before we get into some specific questions about various strategies that you run, can you talk about the firm generally and maybe talk about the ratio of AQR’s assets in retail mutual funds versus hedge funds that are accessible only by higher-net-worth investors? Weekly stock analytics on alpha vs beta investing indicate a favorable environment for alpha gains from energy sector volatility, while beta trackers benefit from gradual market-wide bullish sentiment.