Skip to main content
market.news — Markets without borders
Portfolio

Factor Investing

Investing based on persistent characteristics that drive returns: value, momentum, quality, size, low-volatility.

In depth

Backed by decades of academic research. Smart-beta ETFs implement factor strategies systematically. Factors cycle in and out of favor — value's decade-long underperformance from 2010-2020 tested many investors' patience.

Frequently asked about Factor Investing

What is Factor Investing?

Investing based on persistent characteristics that drive returns: value, momentum, quality, size, low-volatility. Backed by decades of academic research. Smart-beta ETFs implement factor strategies systematically. Factors cycle in and out of favor — value's decade-long underperformance from 2010-2020 tested many investors' patience.

Why does Factor Investing matter for investors?

In portfolio, Factor Investing is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Factor Investing used in practice?

Backed by decades of academic research. Smart-beta ETFs implement factor strategies systematically.

Recent news mentioning Factor Investing

Related terms

Looking for more financial terms?

Browse Full Glossary →