Four expansive reads on factor investing

I have four really incredibly insightful reads for you on factor investing. They are expansive posts on the topic, going beyond the usual “is smart beta good or bad” variety.

First up, courtesy of America’s favorite financial bloggers, a look at the future of factor investing, now somewhat derisively referred to as “smart beta”. Thanks to Tadas Viskanta for getting all of these viewpoints together in one place:

Finance blogger wisdom: smart beta bubble? (Abnormal Returns)

Corey Hoffstein at Newfound Research takes a look at one of the trickier aspects of multi-factor product creation – yes, it’s cool to mix momentum and value factors, but how do you keep the influence of shorter-term “premium maturities” from dominating the security selection process?

Beware Bad Multi-Factor Products (Newfound Research)

Morningstar’s ben Johnson nails down the trouble with betting on the “Quality” factor – no one actually agrees on what it is. Different quantitative investment shops have alternate metrics to measure “small” and “value”, but the disagreements about what constitutes quality are all over the map.

Finally, Michael Batnick has a masterpiece on his hands here – it’s easy for naysayers to trash smart beta just because it’s grown in popularity, but there is real merit in getting away from traditional market cap-weighting for indexes. Rob Arnott’s seminal RAFI index can be tracked back to 1962 and the results of having a fundamental orientation are pretty unf***withable.

Before You Trash Smart Beta… (The Irrelevant Investor)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. mo thay sung commented on Nov 04

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]

  2. toto hk commented on Dec 01

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]

  3. knockoff best bulgari watch copies commented on Dec 08

    … [Trackback]

    […] Here you can find 17683 additional Information to that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]

  4. diamond art commented on Dec 16

    … [Trackback]

    […] Here you can find 70494 more Information to that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]

  5. tangerine online log-in commented on Jan 17

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]

  6. wigs commented on Jan 24

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2016/03/30/four-expansive-reads-on-factor-investing/ […]