Tag Archives: multi-factor investing
Ingredients in a Multi-Factor Recipe
In our previous blog on multi-factor merits, we discussed the diversification benefits of combining equity factors. We highlighted how multi-factor indices may generate more stable excess returns, while avoiding the risks inherent in timing factors. But to achieve this, can market participants just throw lots of factors into a pot and hope for the best?…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Multiple Paths to Multiple Factor Indexing
Single factor “smart beta” indicized strategies that were once exclusive to the realm of active management. Multifactor indexing is beginning to garner much interest as the newest chapter of index innovation. It’s a natural conjecture that if single factors are successful, combining more than one factor should prove even more beneficial. While any combination of…
Multi-Factor Merits: Are You Putting All Your Eggs in One Single-Factor Basket?
It is undeniable that an individual investor would need considerable skill (or luck) to navigate optimally between the various single-factor equity strategies. If the goal is to outperform the benchmark, then simply choosing between a quality, value, momentum, or low volatility strategy may present the biggest risk. While they all have been shown to hold…
- Categories Factors
- Other Tags