Factor Investing
Factor Tilt
Definition
What is Factor Tilt?
A deliberate overweight toward a factor relative to a broad benchmarkA reference index or rate used to evaluate a fund's performance..
Example in practice
How This Looks in Practice
The portfolioThe complete collection of investments owned by an investor or managed under one mandate. adds a modest small-cap tilt.
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Related Terms
Factor Investing
Factor Investing
An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.
Factor InvestingValue Factor
The tendency for relatively cheap securities to perform differently from expensive securities over time.
Factor InvestingSize Factor
The return pattern associated with smaller companies relative to larger companies.
Regulation & ComplianceFiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.