Factor Investing

Factor Tilt

Definition

What is Factor Tilt?

A deliberate overweight toward a factor relative to a broad benchmark.

Example in practice

The portfolio adds a modest small-cap tilt.

Keep learning

An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.

The tendency for relatively cheap securities to perform differently from expensive securities over time.

The return pattern associated with smaller companies relative to larger companies.

A legal or ethical duty to act loyally and carefully in another person's best interest.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.