Factor Portfolio Returns and Implementation Costs

A recent Advisor Perspectives article by BAM Alliance director of research Larry Swedroe discusses the degree to which implementation costs may affect factor premiums. Swedroe first offers a checklist of “criteria that should be met before you consider investing in a factor.” Besides demonstrating higher returns, he says a factor must be: Persistent, with returns holding over time and across different economic regimes; Persuasive, holding across counties, regions, sectors and asset classes; Robust, holding over… Read More