Factor Investing

Multifactor Investing

Definition

What is Multifactor Investing?

Combining several factors in one portfolio.

Example in practice

The fund blends value, quality, momentum, and size.

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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.

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