Factor Investing
Size Factor
Definition
What is Size Factor?
The return pattern associated with smaller companies relative to larger companies.
Example in practice
How This Looks in Practice
A small-cap portfolioThe complete collection of investments owned by an investor or managed under one mandate. targets the size factor.
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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 InvestingMomentum Factor
The tendency for recent relative winners and losers to continue their trends for a period.
Regulation & ComplianceFiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.