Smart Beta ETFs, or strategic ETFs, which straddle the line between active and passive strategy, have become popular among institutional and HNI investors. Currently, seven such ETFs track custom-made indices that use a variety of fundamental and technical filters such as PE and PB ratios to choose their constituents. Their traded volume in the exchanges see a gradual surge thanks to their outperforming returns against the broader indices. For instance, ETFs tracking the Nifty 50 Value 20 Index (TRI) delivered 57% while Nifty 50 TRI gave 47% over the past year. Given its complex structure, Smart Beta ETFs suit high-risk profile investors who understand a product very well.