Factor-based investment strategies have not been widely accessible in the past.

Accessibility to factor investing

Recently, however, interest in such strategies has increased greatly, leading to a number of factor strategies becoming “indexed”. FTSE, MSCI, STOXX and others have put together replicable factor indices.

With Exchange Traded Funds (ETFs), accessing value, volatility, quality and yield strategies has never been easier. You can simply access your preferred factor with one click. There are many good reasons to consider them as an addition to your portfolio:

  • Sound academic foundation backed by numerous empirical studies
  • Proven long-term outperformance of the broader market*
  • Diversification of risk
  • A variety of new risk exposures
  • Liquid, transparent, rules-based strategies

*Foundations of Factor Investing, MSCI. December 2013.
Harvesting Risk Premia with Strategy Indices, September, 2011