Investment Approach

Factor-based strategies

Leverage factor-based investment strategies for your clients. 

Constructing our factor-based products

Vanguard investments can help you customize clients' tilts toward the factors that historically have influenced portfolio performance. Our low-cost, active, factor-based funds consist of both ETFs and mutual funds, focusing on four factors that can be used in a number of ways to help clients meet their objectives.

The four well-known factors are value, momentum, quality, and minimum volatility.

Our suite of actively managed and rules-based factor products represent an innovative way to target factors. To be considered a viable factor, we believe it must display an enduring, logical rationale for investing, be backed by solid empirical evidence, and be investable.

Learn more about factor-based strategies

Our factor-based funds

Introducing seven high-quality, low-cost additions to our active lineup. Consisting of five ETFs and two mutual funds, our factor products can be used in a number of ways in your clients' portfolios.

Disclosures and footnotes

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investing is subject to risk, including possible loss of principal.

Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.

Factor funds are subject to investment style risk, which is the chance that returns from the types of stocks in which the fund invests will trail returns from U.S. stock markets. Factor funds are subject to manager risk, which is the chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.