What Is Factor Investing? Overview, Smart Beta, & ETFs
Screening specific qualities for your portfolio.
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Investors and fund managers are always looking for ways to beat the market. Many financial researchers spend their entire careers slicing, dicing, and modeling data to find the common traits that drive asset returns. Sounds like a perfect match, right?
That’s the philosophy behind factor investing—seeking the attributes that drive stock returns and tailoring a portfolio around the best ones. It’s not just a Wall Street gimmick; rather, it’s based on decades of academic research studying securities’ movements. Active managers at institutional firms have used these strategies for…
