How might factors benefit investors? - Vanguard Canada...considered factor-based investments....
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How might factors benefit investors? For additional information, investors should seek the advice of a qualified financial advisor. Every asset class is influenced by underlying factors that help shape returns. Momentum, long maturity bonds, and value and low-volatility stocks can be considered factor-based investments. Investors can use factor-based investments to approach the risk characteristics associated with a range of active investments, including manager- and index-based active strategies. A direct allocation to factors may provide these additional benefits: Joel Dickson Principal in Vanguard Investment Strategy Group “Factors are the DNA of an investment portfolio. They determine how an investment behaves.” Maintaining a clear approach that helps investors understand what’s driving portfolio returns. TRANSPARENCY CONTROL COST Letting investors choose their factor exposure and how it varies over time. Replacing high-cost factor exposures with low-cost factor-based investments.
How might factors benefit investors? - Vanguard Canada...considered factor-based investments. Investors can use factor-based investments to approach the risk characteristics associated
For additional information, investors should seek the advice of
a qualified financial advisor.
Every asset class is influenced by underlying factors that help
shape returns. Momentum, long maturity bonds, and value and
low-volatility stocks can be considered factor-based
investments.
Investors can use factor-based investments to approach the risk
characteristics associated with a range of active investments,
including manager- and index-based active strategies. A direct
allocation to factors may provide these additional benefits:
Joel DicksonPrincipal in Vanguard Investment Strategy Group
“ Factors are the DNA of an investment portfolio. They determine
how an investment behaves.”
Maintaining a clear approach that helps investors understand
what’s driving portfolio returns.
Transparency
conTrol
cosT
Letting investors choose their factor exposure and how it varies
over time.
Replacing high-cost factor exposures with low-cost factor-based
investments.
This material is for informational purposes only. This material
is not intended to be relied upon as research, investment, or tax
advice and is not an implied or express recommendation, offer or
solicitation to buy or sell any security or to adopt any particular
investment or portfolio strategy. Any views and opinions expressed
do not take into account the particular investment objectives,
needs, restrictions and circumstances of a specific investor and,
thus, should not be used as the basis of any specific investment
recommendation. Investors should consult a financial and/or tax
advisor for financial and/or tax information applicable to their
specific situation.
All investments, including those that seek to track indexes, are
subject to risk, including the possible loss of principal.
