Factor-based funds differ widely in their construction methodologies. In this video, a panel of experts from Vanguard discusses what benchmarks advisors should look for when they select a factor fund.
Industry experts make compelling cases for smart-beta strategies. Rarely, however, do they address the elephant in the room: costs.
How factor strategies are constructed and implemented will lead to markedly different results. To give you a sense of that difference, we calculated historical returns for various indexes that target the value factor.
Prepare clients for active fund volatility.