Mark Harrison, CFA, looks at combining factors in multifactor portfolios and considers issues of performance measurement in factor investing, in the third installment of his Shortcuts to Factor Investing series.
In the latest installment of his Shortcuts to Factor Investing series, Mark Harrison, CFA, takes a deeper dive into equities and factor investing's wider applications to other asset classes, including fixed income.
If investors have the option to cheaply replicate their desired exposures to help solve their portfolio problems, then why shouldn't they? Mark Harrison, CFA, curates the latest insights on what is meant by smart beta and factor investing and how they differ.
So what do hamburgers and price per pound have to do with equity-oriented long-only smart beta products? A lot more than you think.
Conventional wisdom is quite often wrong and misapprehensions can easily prevail, cemented perhaps by groupthink tendencies intrinsic to peer-influenced media.
The low-yield environment has many investors seeking new sources of outperformance. One development has been the growth of so-called smart beta investments, a $400 billion ETF market with a strong flow of funds from both institutions and retail investors. But are such funds really “smart” and do they truly have the potential to boost performance?
Some argue that smart beta products provide investors with an active approach to passive investing, whereas others believe that it is simply a catchall marketing term that describes any quantitative, rules-based investment strategy that can be formed into an index and sold through mutual funds or exchange-traded funds.
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.