Factor Investing
Multifactor Investing
Definition
What is Multifactor Investing?
Combining several factors in one portfolioThe complete collection of investments owned by an investor or managed under one mandate..
Example in practice
How This Looks in Practice
The fund blends value, quality, momentumThe tendency of assets with strong recent performance to continue outperforming for a period., and size.
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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.