Factor Investing
Factor Exposure
Definition
What is Factor Exposure?
The degree to which a portfolio's returns respond to a factor.
Example in practice
How This Looks in Practice
The fund has positive value and quality exposure.
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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.