Is Factor Investing a Better Way to Invest?
Factor investing is a strategy that targets specific drivers of return, such as value, momentum, quality, size, low volatility, and dividend yield. This approach aims to enhance returns, manage risk, and achieve better diversification compared to traditional investing. By understanding and leveraging these factors, investors can build tailored portfolios that align with their financial goals. While factor investing offers numerous benefits, including empirical support and transparency, it also involves complexities and potential pitfalls. Discover how this data-driven strategy can potentially lead to better investment outcomes and whether it suits your investment approach.
