Factor investing

Factor investing is an investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain differences in stock returns. Security characteristics that may be included in a factor-based approach include size, value, momentum, asset growth, profitability, leverage, term and carry.

Factor investing

Factor investing is an investment approach that involves targeting quantifiable firm characteristics or “factors” that can explain differences in stock returns. Security characteristics that may be included in a factor-based approach include size, value, momentum, asset growth, profitability, leverage, term and carry.