Investment actions

Factor investing insights

Build portfolio resiliency with factors

Investment factors are the broad, persistent drivers of return that underlie all asset classes, and we separate them into two groupings, macro and style factors. Macro factors explain the majority of returns across asset classes, and style factors explain the majority of variation within asset classes. Risk management attributes are a separate category that help explain risk at the individual security level. A factor-based approach to investing may help build better diversified portfolios that are designed to meet specific objectives.

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Factors in portfolios

Factors can help investors with some of the most important decisions they face. From asset allocation to portfolio construction to manager selection, applying a factor lens can help investors better understand risks and more precisely target returns.

Factor behavior in markets

Understanding how different factors may perform in different market environments and stages of the economic cycle is critical to getting the most out of factor-based strategies. Review our research on historical factor performance and learn how investors may be able to use factors to target incremental returns and to seek risk mitigation.

Strengthen your asset allocation
Powered by Aladdin Factor Workbench, see how factor analysis can help bolster a portfolio's strategic asset allocation.
Aladdin Factor Workbench