What is Factor Investing?

Recently I read about an article that talk about factor investing and I think it is interesting to share with my readers.

So for a start, what is factor investing about?

Factor investing is an investment strategy in which securities are chosen based on attributes that are associated with higher returns. Factor investing requires investors to take into account an increased level of granularity when choosing securities; specifically, more granular than asset class. Common factors reviewed in factor investing include style, size, and risk.

–Investopedia

Six key things in factor investing:

1) Value
2)Low Size,
3)Low Volatility
4)High Yield
5)Quality
6)Momentum

It appear interesting to me about this topic as it has a lot of similarity with my dynamic investing strategy that I invented, especially on dynamic investing strategy’s fundamental aspect.

Instead of writing a lot on this topic, I would like to use a new approach, let me share a video with you that do all the explaining 🙂

 

Here is some research article on Factor Investing that you can read further.

Hope that you enjoy this week sharing. Feel free to share you thoughts. Cheers!

 

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