On this episode of the World Financial Podcast, Portfolio Manager, Alessio de Longis, of the OppenheimerFunds Global Allocation and US Dynamic
Multifactor strategies rejoins us to help cut through the noise and highlight current tactical positioning.
There are strategies targeting single risk - factor exposure (e.g., value, low volatility, momentum, quality, or size), those employing alternative weighting methods (e.g., fundamental, dividend, or equal weight) and a smaller, but expanding, set of
multifactor strategies coming to market.
To estimate the difference in the two
multifactor strategies» expected trading costs, the authors use a simple linear model that assumes the asset value lost through market impact increases proportionally with the size of the trade.
Multifactor strategies combine factors into one holistic, broadly diversified strategy that can potentially outperform the broad market.
Investors may also want to consider limiting or diversifying their exposure to certain macro factors, such as changes in economic activity and oil prices, by pursuing minimum volatility and
multifactor strategies.
Nevertheless, these ETFs are worth a consideration by those investors who like DFA's
multifactor strategies but do not want to pay recurring advisory fees to gain access to DFA mutual funds.
An easy way to add smart beta to a portfolio is through
a multifactor strategy.
Not exact matches
Whether a single - or
multifactor approach, there are many different ways to implement smart beta
strategies and bring to life the intuitive and longstanding investment ideas that have historically driven performance.
Hartford
Multifactor Low Volatility US Equity Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.
Hartford Risk - Optimized
Multifactor US Equity Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.
Hartford Risk - Optimized
Multifactor Global Small Cap Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.
Hartford Risk - Optimized
Multifactor Developed Markets (ex-US) Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.
The Hartford
Multifactor Developed Markets (ex-US) ETF (RODM) has provided better growth with lower volatility since inception relative to most cap - weighted
strategies.
The Hartford
Multifactor Low Volatility International Equity ETF and Hartford
Multifactor Low Volatility US Equity ETF may experience more than a minimum level of volatility as there is no guarantee that the underlying index's
strategy of seeking to lower volatility will be successful.
Hartford Risk - Optimized
Multifactor REIT Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.
Hartford
Multifactor Low Volatility International Equity Index is the exclusive property of Lattice
Strategies LLC (a wholly owned subsidiary of Hartford Funds Management Company, LLC) which has contracted with Solactive AG to maintain and calculate the Index.