Factor Investing

Stocks extended gains in February, lifting the STOXX® Global 1800 index to a record high, following better-than-expected US labour market and corporate earnings reports.

A new study from specialists at BlackRock and STOXX explores the potential benefits of low tracking-error, multifactor portfolios. While factor investing has historically been dominated by single-factor strategies with relatively strong tilts, the authors show that diversification across multiple factors with smaller tilts and less tracking error can pay off in the long run.

Stocks extended gains in January, lifting the STOXX® Global 1800 index near an all-time high, as optimism that major central banks will soon start cutting interest rates carried into the new year.

Stocks extended gains in December, pushing the STOXX® Global 1800 index to a record high, on optimism that the Federal Reserve has managed to bring inflation under control without causing a recession.

Stocks jumped by the most in three years in November as better-than-expected inflation reports bolstered investors’ expectations that interest rates in the US and elsewhere may have peaked.

Stocks fell for a third consecutive month in October on concerns that interest rates will remain higher for longer, and amid an escalating conflict in the Middle East.

Stocks fell by the most in one year in September amid expectations that interest rates in the US may stay higher for longer than previously expected.

Stocks fell in August amid softening economic data in Europe and China, and expectations that US interest rates may stay high for a long period.

Stocks rose in July amid signs that global inflation is easing and that the US economy may avoid a recession.

In June, stocks had their second-best month this year on optimism that the global economy is weathering a slowdown and that inflation is easing.

Recent market developments and investing trends have prompted investors to reconsider their investment allocations. Factors assist investors in understanding the present market and informing their investment decisions. Melissa Brown, Managing Director of Applied Research, joins two experts to discuss factor investing in this video.

Global equity indices retreated in May, dragged lower by European and Asian shares. In the US, better-than-expected earnings from technology companies overshadowed concerns about a government default and ongoing interest rate hikes.