The smart beta investment trend continues to go from strength to strength, new figures show.

Assets invested in “smart beta” exchange traded funds and products listed around the world reached a record high of $429 billion at the end of June 2016, according to data from ETFGI, a research and consulting firm tracking this sector.

Record levels of assets were also reached at the end of June for smart beta ETFs/ETPs listed in the US at $390.20 billion, in Canada with $9.44 billion, in Europe with $26.70 billion, and in Japan with $832 million. For the year till the end of June, smart beta equity ETF/ETP assets increased by 7.1 per cent, from $400 billion to $429 billion, with a five-year compound annual growth rate of 31.3 per cent.

According to one definition, smart beta “emphasises capturing investment factors or market inefficiencies in a rules-based and transparent way". The approach is sometimes also known as factor investing. The strategies aim to capture systematically the premiums associated with one or more factor.

“Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s 23 June vote. Volatility was up significantly during the month. The S&P 500 index was up just 0.3 per cent. Emerging markets were up 3.94 per cent while developed markets ex-US declined 2.87 per cent. There is still uncertainty in the markets due to questions on when and how Brexit changes will be implemented and the many changes happening in UK political parties," said Deborah Fuhr, managing partner at ETFGI.

In June 2016, smart beta products saw net inflows of $5.7 billion. Volatility factors gathered the largest net inflows with $2.17 billion, followed by dividend factor-based products with $1.71 billion and value factors with $1.592 billion.

Year to date, smart beta products have seen net inflows of $16.15 billion. Volatility factors gathered the largest net inflows with $14.32 billion, followed by value factors with $6.83 billion and dividend factor-based products with $3.09 billion.

iShares gathered the largest smart beta ETF/ETP net inflows in June with $4.11 billion, followed by Vanguard with $1.26 billion and PowerShares with $672 million of net inflows.

Year to date, iShares gathered the largest smart beta ETF/ETP net inflows with $19.02 billion, followed by Vanguard with $5.26 billion and Charles Schwab Investment Management with $2.15 billion net inflows.