Smart Beta gives you broad representative exposure to equity markets in an ETF, but without the market-cap weightings that often can drag down performance, says Luciano Siracusano, Chief Investment Strategist for WisdomTree. Siracusano says the rise in the number of Smart Beta ETFs over the past year validates WisdomTree's long held belief in this form of indexing. He says the next step is for investors to understand the basics of Smart Beta so they can choose from the wide breadth of ETFs available to them.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

More from Video

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home