Our insights straight
to your inbox

Our insights straight to your inbox

Receive our latest Advisor's Digest
research
and commentary sent the
first business
morning every week.

A weekly digest of our latest research and commentary. Topics include the economy and markets, portfolio strategy, ETFs, and practice management.


Fund openings/closings, fund manager changes, dividend distributions, webinars, and other events you might want to know about.



Already registered? Log on to
manage your
email subscriptions.

STAY CONNECTED

LinkedIn  LinkedIn

  Mobile access
  RSS feed

Factor-based investing

Factor-based investing

Actively position portfolios to seek specific risk-and-return objectives

Vanguard launches suite of factor-based products

Liquidity Q&A: A hidden gem of factor investing?

Article

Liquidity exposure has historically produced a premium, yet many advisors are unfamiliar with it. In this Q&A, Vanguard factor experts Matt Jiannino and Frank Chism discuss the liquidity premium, strategies that target it, and Vanguard U.S. Liquidity Factor ETF.

Vanguard factor experts Matt Jiannino and Frank Chism sit down to discuss the liquidity premium and Vanguard U.S. Liquidity Factor ETF (VFLQ).

  Read article

Elephant in the smart beta room

Blog

The real elephant in the smart beta room is cost. Many smart beta products are more expensive than some traditional active funds.

The real elephant in the smart beta room is cost. Many smart beta products are more expensive than some traditional active funds.

Read blog  

How factors fit into Vanguard's investment philosophy

Video  |  Transcript available

In this 3-minute video clip, Vanguard's Doug Grim discusses how our factor strategies fit into Vanguard's long-standing investment philosophy. He explains that our new products adhere to Vanguard's four pillars of investing: goals, balance, low costs, and discipline.

In this 3-minute video clip, Vanguard's Doug Grim explains how our factor strategies align with our long-standing investment philosophy.

  Watch video

 | 

  Read transcript

Blending factors in a multifactor strategy

Video  |  Transcript available

In this 3-minute video, Vanguard factor experts Doug Grim and Frank Chism discuss how and when to blend factors in a portfolio. They examine strategies that leverage combinations of single-factor products and compare that approach with using a multifactor product.

In this 3-minute video, Vanguard factor experts Doug Grim and Frank Chism discuss how and when to blend factors in a portfolio.

  Watch video

 | 

  Read transcript

Four ways to apply factors in a portfolio

Video  |  Transcript available

Factors can help lower costs, enhance returns, and more. In this 5-minute video taken from a recent webcast, Vanguard factor experts Doug Grim and Frank Chism examine four ways that you can apply factors in client portfolios.

In this 5-minute video, Vanguard's Doug Grim and Frank Chism share four techniques for investing in factors.

  Watch video

 | 

  Read transcript

Targeting the liquidity factor

Video  |  Transcript available

No other provider offers a fund or ETF quite like Vanguard U.S. Liquidity Factor ETF (VFLQ). In this 3-minute video, Vanguard factor experts Frank Chism and Antonio Picca discuss our unique approach to targeting the liquidity factor premium using VFLQ.

In this 3-minute video, Vanguard factor experts Frank Chism and Antonio Picca discuss our unique approach to targeting the liquidity factor premium.

  Watch video

 | 

  Read transcript

Webcast replay: Factor-based investing

Video  |  Transcript available

With our recent launch of factor products, you might have questions about how we think about factors at Vanguard. Vanguard experts Frank Chism, Doug Grim, and Antonio Picca answered advisors' questions about our factor methodology in our latest webcast.

Watch the full replay of Vanguard experts Frank Chism, Doug Grim, and Antonio Picca answering advisor questions about factor-based investing.

  Watch video

 | 

  Read transcript

Factor-based investing: The rationale and the risks

Audio  |  Transcript available

Factor funds are not for every investor but they do serve a definite role in the marketplace. In this podcast, Frank Chism, a senior product manager with Vanguard Portfolio Review Department, highlights what is driving interest in these investments.

In this podcast, Vanguard senior product manager Frank Chism highlights what is driving interest in factor-based investing.

  Listen to audiocast

 | 

  Read transcript

Vanguard factor ETFs: Harness low-cost, transparent exposure to factors

Article

Vanguard's new low-cost factor ETFs are a rules-based, transparent innovation in factor investing. This brochure lays out our perspective on factor-based investing and explains how you can reflect your clients’ goals through factor exposure.

Vanguard's new low-cost factor ETFs are an innovation in factor investing. This brochure explains how you can reflect client goals through factor exposure.

  Read article

Do you like your style factor spicy or tangy? Evaluating factor funds

Blog

Factor-based strategies are often different, even when focused on the same factor. Here are four key questions to ask when evaluating factor products.

Factor-based strategies are often different, even when focused on the same factor. Here are four key questions to ask when evaluating factor products.

Read blog  

A how-to guide for evaluating equity factor products

Article

To help advisors conduct their due diligence on factor products, this brochure offers a handy checklist of product-related questions to consider as they look at product construction methodology and implementation, as well as the strategy behind multifactor products.

To help advisors conduct their due diligence on factor products, this guide offers a handy checklist of product-related questions to consider.

  Read article

 | 

  Read PDF

Expand your toolkit with factor-based strategies

Blog

Tom Rampulla explains how Vanguard’s low-cost, active factor ETFs represent an innovation to reflect client goals through factor exposure.

Tom Rampulla explains how Vanguard’s low-cost, active factor ETFs represent an innovation to reflect client goals through factor exposure.

Read blog  

A different approach to factor-based funds

Article

Financial services providers who offer factor-based funds may take different investment approaches. John Ameriks, head of Vanguard Quantitative Equity Group, helps make sense of the factor-based funds sector and explain how Vanguard approaches these products.

John Ameriks, head of Vanguard Quantitative Equity Group, helps make sense of the factor-based funds sector and explain how Vanguard approaches these products.

  Read article

How to use factor-based investing in client portfolios

Article

This research brief can help advisors understand how certain factors have performed over time, see our four different approaches to implementing factors and consider five key choices to make before choosing a factor-based product.

This research brief can help advisors understand how certain factors have performed over time. See our four different approaches to implementing factors.

  Read article

Options for achieving factor exposure

Article

Historically, factors have been targeted through traditional active mutual funds or style index funds and ETFs. Factor-based funds and ETFs now offer a new option. Use our concise guide to distinguish among the key attributes of factor-based investments.

Use this concise guide to distinguish among the key attributes of factor-based investments.

  Read article

 | 

  Read PDF

Drawing systematic value from the liquidity premium

Article

This research brief outlines that some investments are more liquid than others and that superior liquidity comes at a price. If we recognize that liquidity has a price, can liquidity be reduced to a systematic investment factor?

This brief outlines that some investments are more liquid than others and that superior liquidity comes at a price. Learn why liquidity should carry a premium.

  Read article

 | 

  Read PDF

Factor-based investing: The basics

Article

Share this brief piece with clients to supplement your discussions about factor-based investing. Help them understand common factors and the basis of their respective premiums, as well as key features of these dynamic investment products.

Share this brief piece with clients to supplement your discussions about factor-based investing.

  Read article

 | 

  Read PDF

How to select factor-based products for client portfolios

Article

If an advisor decides that factor-based investing is the right choice for client portfolios, the advisor will need to answer three major questions before selecting the factor products.

Three major questions to answer before selecting factor products for client portfolios.

  Read article

A guide to evaluating back-tested investment strategies

Article

It's important to ask questions when evaluating back-tested investment strategies. We've developed a checklist that may help you avoid some common biases that could affect your choice.

Conducting due diligence when evaluating back-tested investment strategies is important. To assist you, we've developed a checklist of sample questions.

  Read article

 | 

  Read PDF