Factor Investing

Stocks gained for a fifth consecutive month in August amid expectations the Federal Reserve is poised to cut interest rates as early as this month.

Stocks rose for a fourth consecutive month in July amid optimism that the worst of new trade tariffs will be avoided and as companies reported better-than-expected quarterly earnings.

In June, stocks closed their strongest calendar quarter since December 2020, with US shares topping their February record, as earnings optimism outweighed geopolitical concerns and trade tensions. European stocks fell, paring their year-to-date advantage.

Stocks jumped the most in 1½ years in May after the US and China agreed to pause import tariffs as both nations negotiate a reduction in trade costs. European stocks extended this year’s rally on expectations the region may be spared the worst effects of increased export duties to the US.

The ability of minimum volatility indices to protect portfolios against major pullbacks and deliver stable returns gains relevance during market downturns.

A weaker US dollar helped stocks recover in April, but extended this year’s losses for euro-based investors.

A recent webinar from Legal & General (L&G) and STOXX explored the latest in factor index design, with experts debating multifactor strategies, long-term outperformance, risk control objectives, and the integration of sustainability considerations.

The Director for EMEA Equity Factor Product Strategy at BlackRock discusses in this article how a balanced multifactor portfolio with risk controls in place can harness the potential upside of factors over the long term.

Stocks had their worst month since September 2023 in March, as investors fretted about the outlook for US economic growth, inflation and international trade. US stocks paced the retreat.

European stocks extended January’s strong performance last month, as investors continue to favor a region that’s underperformed in recent years. US indices failed to keep their momentum.

Stocks jumped in January as investors’ optimism that earnings will continue to grow overshadowed concerns about global politics and trade issues.

Three iShares ETFs will switch to multifactor indices designed by STOXX and BlackRock, expanding an existing collaboration. The indices implement optimized strategies targeting risk premia while controlling for risk, and additionally screen out companies based on controversial activities and carbon emissions.