Factor Investing

What is factor investing? Factor investing is an investment strategy that focuses on capturing the return premiums associated with specific characteristics or attributes of a security, such as size, value, momentum, quality, low volatility, etc. The idea is that these factors have historically provided higher returns than a broad market benchmark, and can be selected and combined to create a diversified portfolio. The approach is based on academic research in finance and economics and aims to provide a systematic and repeatable way to generate excess returns over time. What are…