The number of institutional investors looking to boost allocations to smart beta indexes is continuing to grow, according to FTSE Russell.

Stats from the LSE index subsidiary show that 62% of asset owners with an existing smart beta allocation are now evaluating additional exposure.

Meanwhile, the percentage of buy-side firms using five or more smart beta indexes has risen tenfold in just two years.

Smart beta strategies contain characteristics of both passive and active investing.

Although some would argue it is not simply a fund or strategy, more a different way of thinking about investing beyond traditional active and passive management.

“What is “smart” about smart beta is the notion of reconfiguring the complexion of an index-like portfolio in ways that may enhance returns, reduce risks or capture desirable investment themes,” experts at BlackRock previously said in a study.

“Once we’ve accepted the notion that passive investing need not be cap-weighted, it opens up a new world of possibilities.”

FTSE Russell's survey claims that the strongest growth in smart beta adoption is among asset owners with less than $1bn in assets.

While low-volatility and value factor indexes still lead, the stats show adoption of multi-factor combination indexes has nearly doubled in the last year and is now a close third.

And close to 70% of asset owners take a long view on smart beta, planning to use smart beta indexes five years or longer to help achieve investment objectives.

“The survey demonstrates accelerating interest in and implementation of smart beta indexes among global institutional asset owners,” said Rolf Agather, managing director of North America research, FTSE Russell.

“While many asset owners and consultants have increased their understanding of smart beta, continuing innovations in other asset classes and the multi-factor arena underscore the need for more information and education.”

FTSE Russell polled more than 250 asset owners between January and February with a combined $2trn worth of assets under management.