In focus - Thought Leadership

Five factor investing mistakes - and how to navigate them

It's not been plain sailing for factor investing in recent years, but we've identified some ways to improve the chances of its success.

15.10.2019

It’s been a tough period for factor investing. Heralded as the answer to cheap portfolio construction, efficient portfolio management and a simple way to remove unintended factor exposure, factor portfolios have not been performing the way everyone expected.

In this paper, available as a PDF at the foot of the page, we highlight some of the common mistakes to avoid based on our own experience, and how to manage them:

  • Mistake #1: Factors no longer work
  • Mistake #2: Using too many factors
  • Mistake #3: Being too cute when you combine factors
  • Mistake #4: "The back-test told me to do it"
  • Mistake #5: A factor completion portfolio might compete rather than complete

Find out more in our full paper below.