…you would screen the universe based on your relative momentum factor and buy the stocks in the top 10. Relative strength is the most common relative momentum indicator. The Asset…
Search Results for: factor
A Framework to Evaluate Value Strategies
…Stocks $36 billion $7.7 billion VLUE iShares Edge MSCI USA Value Factor ETF Small and Mid-Cap Stocks $101 billion $15 billion VFVA Vanguard US Value Factor ETF All Stocks $35…
Dividends Can Help When Value Trails Growth
…the only factor to consider.” It cites comments from T. Rowe Price Dividend Growth fund Tom Huber, who warns investors to be mindful of sectors before “diving in to add…
Mark Mobius: No Recession and Trump in 2020
…factor. Mobius also expects the Fed to continue lowering interest rates: “You can’t have a situation where Europe moves into negative rates, China lowers its rates, Japan continues what they…
Factor Portfolio Returns and Implementation Costs
…“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…
Stock-Fund Performance Predictor is Powerful
…stock funds—and will release its findings in upcoming articles. Note: the article explained that the study’s calculations were based on the Carhart Four Factor Model, which adjusts for investment style….
Five Questions: Tackling Some of the Toughest Questions in Investing with Michael Mauboussin
…the discount rate is off. But if the factors work for behavioral reasons, then EI is a powerful tool. I should note that the value factor relies on negative feedback,…
Commentary: Smart Beta vs. Alpha-Beta Combination
…ranked by factors,” the article explains, “we could allocate to a combination of the stock market and a long-short multi-factor portfolio. We could build an alpha + beta strategy through…
Five Questions: Factor Timing with Nicolas Rabener
…returns on a factor-based portfolio by timing factors? Nicolas: Yes, and no. Factor timing is the equivalent of market timing, which is typically defined as forecasting returns based on discretionary…
The Rising Bar for Active Management
…what they did. But the rise of factor investing has changed all of that. Now that factors are more understood and products using them are more commercially available, the bar…