Those of us that invest using factors have been taught that there needs to be a reason why they work. We have been taught that for their excess returns to…
Tag: Factors
For 20 Years, Momentum Investing Has Struggled
20 years ago, Morningstar changed the methodology for their mutual-fund ratings, and since then strategies that employ momentum-stock investing have struggled to find success, contends an article in The Wall…
Investing In Sectors: A Look at the 11 Sector ETFs
By Justin Carbonneau (Twitter | LinkedIn | YouTube) — There are eleven sectors (Energy, Health Care, Consumer Staples, Technology, Consumer Discretionary, Industrials, Communication, Services, Financials, Real Estate, Utilities, and Materials) that make up the…
Bridging Financial Planning and Factor Investing with Northern Trust's Peter Mladina
In this episode, we speak with Northern Trust’s Peter Mladina. Peter has published extensive research in the areas of both financial planning and factor investing. We discuss his work in…
A Better Way To Seek Out Quality Stocks
In times of volatility, investors lean more towards stocks that have steady earnings and solid balance sheets, and recent research from Vanguard displays a new way to get a better…
Factor Investing in Under the Radar Markets with Chris Covington
In this episode, we talk factor investing with AJO Vista Head of Investments Chris Covington. We discuss their unique approach to factor investing and how they apply it to less…
The Surprising Investment Factor That Defies the Risk-Return Tradeoff
By Jack Forehand, CFA, CFP® (@practicalquant) — There are some core principles that are supposed to govern investing. If I were to ask you to come up with the most important one of…
A Detailed Look at the Quality Factor
By Jack Forehand, CFA, CFP® (@practicalquant) — We all want to own great companies. We look at Warren Buffett’s success and want to own the same types of businesses he did. We love…
A Look at Changing Factor Exposures in an Evolving Market
By Jack Forehand, CFA, CFP® (@practicalquant) — The market has seen some major changes since the 2020 market bottom. It would have been very difficult to predict the massive rally we have seen…
Lu Zhang On The Evolution of Asset Pricing Models And His First Principles Approach to Improve Them
Asset pricing models have evolved significantly over the past several decades. From the Capital Asset Pricing Model to Fama and French’s 3 Factor Model to their more recent 5 and…