Equity factor-based investing: A practitioner's guide
17 July 2017 | Investing
Equity factor-based investing is a form of active management that aims to achieve specific risk or return objectives through systematic, rules-based strategies. A Vanguard research paper, Equity factor-based investing: A practitioner’s guide, provides a practical framework for determining whether, how, and why to include equity factor-based investments in a portfolio.
Authors Douglas M. Grim, Scott N. Pappas, Ravi G. Tolani, and Savas Kesidis examine the historical performance of some commonly discussed strategies, detail why a rigorous due-diligence process is necessary, and describe four hypothetical case studies that explore how equity factor tilts can be used by investors.