Factor Investing
Carry Factor
Definition
What is Carry Factor?
Return earned from holding higher-yielding assets relative to lower-yielding funding or alternatives.
Example in practice
How This Looks in Practice
A currency strategy buys high-rate currencies and sells low-rate currencies.
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Related Terms
Factor Investing
Factor Investing
An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.
Factor InvestingValue Factor
The tendency for relatively cheap securities to perform differently from expensive securities over time.
Factor InvestingSize Factor
The return pattern associated with smaller companies relative to larger companies.
Regulation & ComplianceFiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.