Factor investing involves using factor models like CAPM and APT to predict individual security returns based on macroeconomic or other factors. Factor investing is a formulaic method for forecasting ...

Factor investing is one of the most popular investment strategies among institutional and retail investors alike. It involves selecting and managing securities based on specific factors or ...

Factor-based exchange-traded funds (ETFs), also known as smart beta ETFs, are a type of exchange-traded fund that aims to provide investors with market-beating returns by focusing on specific ...

Factor investing targets securities with traits historically linked to superior risk-adjusted returns. Diversification within asset classes, based on factors like size or momentum, curtails portfolio ...

This article first appeared in the December issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor by visiting this website. Factor investing is built on the premise that ...