Factor Investing

Four years after BlackRock and STOXX launched their multifactor ETF collaboration, investors have navigated inflation shocks, higher interest rates, sharp style rotations and growing market concentration.

The index translates years of research into a systematic approach that adjusts its factor exposures as market conditions evolve. Backtested results show 22 years of consistent index outperformance, with low tracking error and turnover.

European equity indices rose for a fourth consecutive month in July while US stocks fell, as investors rotated away from the market’s most expensive sectors, including technology shares.

Factor investing has moved decisively beyond single-style approaches. Multifactor strategies offer more diversified portfolios — but not all are built the same.

Global stock indices slipped in June as investors weighed the implications of the conflict in Iran and the trajectory of corporate earnings, yet still recorded their best quarterly performance since 2020. European stocks ended last month at an all-time high.

In this Q&A, the academic and practitioner discusses how the recently launched iSTOXX Ang Research Enhanced indices dynamically rotate between underlying factors to tilt toward signals that appear more attractive at any given time, and how other rules ensure efficient, benchmark-aware access to sources of return.

Global stock indices extended gains in May and ended the month at new all-time highs as investors grew increasingly optimistic that the US-Iran conflict is moving toward a diplomatic breakthrough.

Global equity indices resumed gains in April, regaining record highs as strong corporate earnings offset volatility in interest rates and oil prices.

STOXX Ltd., part of the ISS STOXX group of companies and a leading provider of benchmark and custom index solutions to global institutional investors, today announced a strategic collaboration with leading factor investing academic and practitioner Dr. Andrew Ang, with the upcoming launch of the iSTOXX® Ang Research Enhanced Index suite.

Global benchmarks had their worst month since September 2022 in March as the conflict in Iran drove a surge in oil prices and sparked fears of higher interest rates.

A rotation out of technology and AI-related stocks weighed on US indices in February, while inflows into lower-valuation, more traditional sectors lifted European benchmarks for an eighth straight month.

Stocks rose in January on optimism that global economic growth will continue to support corporate earnings. Emerging-market indices advanced as the US dollar weakened, while basic-resources stocks jumped alongside metal prices.