Looking beyond the story telling that characterizes various investment philosophies, the long -
term return drivers of many complex smart beta strategies are tilts toward well - known factor / style exposures, such as value, size, and low volatility.
Not exact matches
Targets exposure to a factor that has been a long -
term driver of
returns, such as momentum, quality, size and value
While valuations drive long -
term returns, the primary
driver of market
returns over shorter portions of the market cycle is the attitude of investors toward risk, as indicated by the uniformity or divergence of market internals.
For active investors seeking to identify actionable ETF investment ideas, our team of analysts analyzes technical and fundamental price
drivers of more than 2,000 ETFs to identify both short and longer -
term opportunities with a focus on absolute
returns.
So, not surprisingly, we find that valuations are the primary
driver of long -
term investment
returns.
Valuations are the primary
driver of long -
term returns, and the risk - preferences of investors — as conveyed by the uniformity or divergence of market action across a broad range of individual stocks, industries, sectors and security types (including credit)-- drive
returns over shorter portions of the market cycle.
Of course, the point about duration still stands — regardless of what drives
returns, long duration means that even small changes to those
drivers of
return can be amplified into very big changes in prices in the short
term.
As I've emphasized in prior market comments, valuations are the primary
driver of investment
returns over a 10 - 12 year horizon, and of prospective losses over the completion of any market cycle, but they are rather useless indications of near -
term returns.
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Driver — «Silence,» «Star Wars: The Force Awakens» Joel Edgerton — «It Comes at Night,» «Loving» Chris Evans — «Captain America» series, «Snowpiercer» Luke Evans — «Beauty and the Beast,» «The Girl on the Train» Fan Bingbing — «I Am Not Madame Bovary,» «Cell Phone» Elle Fanning — «The Beguiled,» «20th Century Women» Golshifteh Farahani — «Paterson,» «AboutElly» Anna Faris — «Scary Movie» series, «Brokeback Mountain» Tom Felton — «A United Kingdom,» «Harry Potter» series Rebecca Ferguson — «The Girl on the Train,» «Mission: Impossible — Rogue Nation» Lou Ferrigno — «The Incredible Hulk,» «Hercules» Gal Gadot — «Wonder Woman,» «Fast & Furious» series Charlotte Gainsbourg — «Norman: The Moderate Rise and Tragic Fall of a New York Fixer,» «Melancholia» Jeff Garlin — «Safety Not Guaranteed,» «WALL - E» Spencer Garrett — «Public Enemies,» «Thank You for Smoking» Domhnall Gleeson — «Star Wars: The Force Awakens,» «Ex Machina» Sharon Gless — «The Star Chamber,» «Airport 1975» Donald Glover — «The Martian,» «Magic Mike XXL» Judy Greer — «Jurassic World,» «13 Going on 30» Rupert Grint — «Moonwalkers,» «Harry Potter» series Noel Gugliemi — «Lowriders,» «The Fast and the Furious» Jon Hamm — «Baby
Driver,» «The Town» Armie Hammer — «The Birth of a Nation,» «The Social Network» Naomie Harris — «Moonlight,» «Skyfall» Leila Hatami — «A Separation,» «Leila» Anne Heche — «Rampart,» «DonnieBrasco» Lucas Hedges — «Manchester by the Sea,» «Moonrise Kingdom» Chris Hemsworth — «Thor» series, «Rush» Ciarán Hinds — «Silence,» «Munich» Aldis Hodge — «Hidden Figures,» «Straight Outta Compton» Bryce Dallas Howard — «Jurassic World,» «The Help» Bonnie Hunt — «The Green Mile,» «Jerry Maguire» Jiang Wen — «Rogue One: A Star Wars Story,» «Let the Bullets Fly» Dwayne Johnson — «Moana,» «Central Intelligence» Leslie Jones — «Ghostbusters,» «Masterminds» Keegan - Michael Key — «Don't Think Twice,» «Keanu» Aamir Khan — «3 Idiots,» «Lagaan» Irrfan Khan — «Life of Pi,» «Slumdog Millionaire» Salman Khan — «Sultan,» «Bajrangi Bhaijaan» Rinko Kikuchi — «Pacific Rim,» «Babel» Zoë Kravitz — «Divergent» series, «Mad Max: Fury Road» Sanaa Lathan — «Out of Time,» «Love and Basketball» Carina Lau — «Infernal Affairs 2,» «Days of Being Wild» Tony Leung — «The Grandmaster,» «Lust, Caution» Rami Malek — «Short
Term 12,» «The Master» Leslie Mann — «Funny People,» «Knocked Up» Kate McKinnon — «Ghostbusters,» «Office Christmas Party» Sienna Miller — «The Lost City of Z,» «American Sniper» Janelle Monáe — «Hidden Figures,» «Moonlight» Michelle Monaghan — «Patriots Day,» «Gone Baby Gone» Viggo Mortensen — «Captain Fantastic,» «The Lord of the Rings» series Ruth Negga — «Loving,» «Warcraft» Franco Nero — «The Lost City of Z,» «Django» Elizabeth Olsen — «Avengers: Age of Ultron,» «Martha Marcy May Marlene» Deepika Padukone — «xXx:
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Line - ups
return to the two -
driver format, with Gavin partnered by long -
term teammate, Tommy Milner
The biggest
driver of long -
term investment
returns is not an investor's skill but the overall market
returns over the period.
Someday I will probably switch over to long
term quality, but the
driver will be reducing the amount of time I spend per day on investing and not maximizing my
return.
Dividends can be a major
return driver in the long
term, and investors would be wise to pay close attention to cash distributions when looking for the best opportunities in the market.
The answer, of course, depends heavily on current valuations and market conditions, but we always approach the question with an effort to understand the
drivers of long -
term risks and expected
returns across many different asset classes.
While there are dozens of factors that drive investment
returns, we believe the five factors below have been well documented by academic research, economic logic, and empirical evidence to be the most impactful
drivers of long -
term returns.
The buy and hold forever investor forgoes a time - tested
driver of long
term returns, temporary mispricings due to volatility, and relies on a far less certain
driver of long
term returns, future earnings growth and future high
returns on capital.
Second, short -
term bonds have less exposure to credit opportunities (and of course, risk), a key
driver of bond
returns.
I think that by focusing on companies that
return more on their retained earnings than average — and grow consistently as a result — I can maximise this
driver of long
term returns.
Agencies are trying to encourage all of their
term customers to add on the come
returning of top quality
driver.