Key factors that help
drive returns.
Factor investing uses quantitative indicators for stock
selection, striving to cost-efficiently outpace the returns of
passive investing. These metrics are typically grouped into the
categories of value, momentum, quality, and low volatility,
which have historically driven investment risk and return.
Factors are drivers of potential outperformance
Factors are broad, persistent, drivers of return that research
has found to be historically enduring across many geographies
and market cycles.
Factors are science-backed and economically
intuitive
Rooted in key tenets of behavioral finance, individual factors
have tended to outperform during different parts of the
economic cycle.
Factors are diversifying
Historically, factors have offered differentiated returns
and diversification benefits, with low correlations between
different factors.
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