Factor Investing

Size Factor

Definition

What is Size Factor?

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

Example in practice

A small-cap portfolio targets the size factor.

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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 tendency for recent relative winners and losers to continue their trends for a period.

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

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