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Factor Investing
Most Recent Factor Investing
![Minimum Variance: A Leg Up on Geopolitical Risk?](https://stoxx.com/wp-content/uploads/2020/08/running-intro-image-900x350.png)
In this paper, we take a look at how minimum variance performed vis-à-vis its core market counterpart during nine recent geopolitical risk events. The nature of these events is that they tend to push correlations towards 1.0.
![Unleashing the Power of a Value-Growth Combination](https://stoxx.com/wp-content/uploads/2020/08/bridge-intro-image-900x350.png)
In the asset management world, the terms ‘value’ and ‘growth’ have long been used to describe two distinct investment styles, and many managers categorize themselves and their products along these two labels.
![Value Stocks Falter — Again](https://stoxx.com/wp-content/uploads/2020/08/abstract-tech-intro-image-2_small-900x350.jpg)
After rising in tandem with other investment styles for most of 2019, value stocks — those trading at below-average valuations — have since May slipped back to the bottom, adding to their multi-year lagging record.
![The Low-Volatility Premium Offered by Minimum-Variance Strategies](https://stoxx.com/wp-content/uploads/2020/08/abstract-color-intro-image-900x350.png)
Minimum-variance strategies – which aim to reduce swings in portfolio prices and typically consider both share-price volatility and intra-stock correlation – have gained much traction since the global financial crisis.
![The low volatility premium – An analysis of factor exposures of minimum variance strategies](https://stoxx.com/wp-content/uploads/2020/08/risky-stocks-are-getting-sheaper-intro_small-900x350.jpg)
Factor Investing
The low volatility premium – An analysis of factor exposures of minimum variance strategies
Minimum variance strategies have gained significant traction especially since the global financial crisis. They aim at reducing or minimizing variance, i.e. the square of volatility as measured by standard deviation, or, in this case, price fluctuations of portfolio prices around their mean.
![Low Volatility’s Edge in Europe](https://stoxx.com/wp-content/uploads/2020/08/cityskape-intro-image-900x350.jpg)
A recent report by State Street Global Advisors examined this behavior, which refers to low-volatility stocks’ long-run outperformance even if they take on less risk — i.e. have lower beta — than the broader market.
![The Power of Factor Diversification](https://stoxx.com/wp-content/uploads/2020/07/ESGX-research-report-july-2020-900x250.jpg)
The growing popularity of smart-beta products has fueled the debate around whether their advantages and potential performance can prevail across different market environments.
![Is Passive Becoming Active? Factors to Consider](https://stoxx.com/wp-content/uploads/2020/08/ispassivebecomingactivefactorstoconsider_intro-e1600865765240-900x350.png)
A new and intriguing offshoot of the active vs passive debate is emerging. As factor index investing continues to expand the choices available to investors, is it still a truly passive strategy, or is it active?
![Factor Performance Can Be Timed and Exploited, Study Finds Factor Performance Can Be Timed and Exploited, Study Finds](https://stoxx.com/wp-content/uploads/2020/08/city-intro-image-3-900x350.png)
Index | Factor Investing
Factor Performance Can Be Timed and Exploited, Study Finds Factor Performance Can Be Timed and Exploited, Study Finds
Investment factors such as size or value have a ‘robust’ momentum profile that allows investors to time their future performance based on recent returns, according to a study1 published by researchers at AQR Capital Management LLC.
![Volatility – An Investable Asset Class](https://stoxx.com/wp-content/uploads/2020/08/abstract-finance-intro-image-3_small-900x350.jpg)
Ever since the onset of the financial crisis in 2008, volatility has become a critical aspect for investors to consider in their portfolios.
![Volatility – An Investable Asset Class](https://stoxx.com/wp-content/uploads/2020/09/finance-abstract-ticker-intro-image-900x350.png)
Ever since the onset of the financial crisis in 2008, volatility has become a critical aspect for investors to consider, measure and position in their portfolios.
![The market portfolio’s hidden factors](https://stoxx.com/wp-content/uploads/2020/08/abstract-tech-intro-image-2_small-900x350.jpg)
When it comes to evaluating the success of equity portfolios or constructing a traditional passive investment strategy, the go-to instrument has usually been the market capitalization-weighted index.