Pursuing Long-Term Capital Growth Through Risk Efficiency
Investor interest in multifactor strategies continues to accelerate as a potential means to enhance capital growth beyond market beta.
The rapid proliferation of non-cap weighted ETFS has presented investors with a dizzying array of choices. There are strategies targeting single-risk factor exposure (e.g., value, momentum), those employing alternative weighting methods (e.g., fundamental-weighted, dividend-weighted) and a smaller, but expanding, set of multifactor strategies coming to market. With lower forward-looking returns for equities likely, investor interest in such strategies continues to accelerate as a potential means to enhance capital growth beyond market beta.
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