The Factor Box: A New Lens for Investing
The Factor Box is a new lens through which to evaluate investments. Investors can use the tool to understand and compare the factor exposures of various funds, and to aid in portfolio construction and risk management.The Factor Box analyzes and depicts fund exposures across six different factors.
Getting Started with the Factor Box
The Factor Box allows for easy comparison of the factor exposures of various U.S. equity mutual funds and ETFs relative to the estimation universe, their peers, and a cap weighted benchmark.
How it Works
When a fund is selected, the Factor Box illustrates the strength of that fund’s exposure to each of the six factors relative to the exposures of the other funds in an easy-to-read chart.
Understanding the Chart
The fund’s exposures to each of the six factors relative to its universe are displayed in the chart. These relative exposures are classified in one of the following categories:
Underweight: Exposure within the 1st to 30th percentile.
Neutral: Exposure within the 31st to 69th percentile.
Overweight: Exposure within the 70th to 100th percentile.
Comparing to a Peer Universe
Clicking the buttons at the bottom will overlay the percentile rankings of the median fund for the fund’s Morningstar Category or the default benchmark, which is assigned by BlackRock based on the fund’s Morningstar Category. Both the peer universe and benchmark will be listed at the top of the chart once a fund is selected.