Schwab: Don't Omit Alternative Beta Funds From Your Asset Allocation

Alternative Beta strategies use the positive attributes of passive and active investing to beat traditional market-cap weighted indexes, says Anthony Davidow, Vice President Alternative Beta and Asset Allocation Strategist for Charles Schwab. Davidow tells TheStreet's Gregg Greenberg that alternative beta-based mutual funds or exchange traded funds should be used as a complement to well-known market-cap based investing strategies. Finally, he says equity indexes are well represented in the alternative beta world, but there is a long way to go when it comes to commodities and fixed income.