What are factors?

Factors are the foundation of portfolios

They are broad, persistent forces that have driven returns of stocks, bonds, currencies and other assets.


In fact, we can distill dozens of asset classes and millions of securities into a small number of factors. There are also macroeconomic factors that capture systematic risks that exist across asset classes, like economic growth, inflation, and emerging markets.

Guide to Factors

What do factors do?

Factor-based strategies, which focus on one or more factors, can help investors pursue a range of outcomes, such as reducing risk, diversification, improving returns or generating income.

Why have factors worked and how do I get started?