
Problems with smart beta – part 5: It’s impossible to know when a factor stops working
This is the fifth post in a series discussing some of the problems associated with investing in “smart beta” strategies. For the previous post on

Problems with smart beta – part 4: Factor decay
This is the fourth post in a series discussing some of the problems associated with investing in “smart beta” strategies. For the previous post on

Problems with smart beta – part 3: Factors can change
This is the third post in a series discussing some of the problems associated with investing in “smart beta” strategies. For the previous post on

Problems with smart beta – part 2: Defining a factor is hard
This is the second post in a series discussing some of the problems associated with investing in “smart beta” strategies. For the previous post on

Problems with smart beta – part 1: The cyclicality of factors
This is the first post in a series discussing some of the problems associated with investing in “smart beta” strategies. Everyone’s seen the quilt chart

Problems with smart beta
Before ESG investing came along, “smart beta” was the next big thing. Smart beta strategies involve an investor tracking an index, much like traditional index

Multifactor investing – part 2
Considerations before investing in multifactor funds As we saw in my last post, multifactor investing has provided investors with a way to harness the benefits

Multifactor investing – part 1
As we saw in a previous post, factors have provided investors with a way to enjoy superior returns over a market-cap weighted benchmark over a

Why do factors outperform?
Now that we’ve looked at the major factors and the evidence behind them, the obvious question becomes why do these factors exist in the first

What is factor investing?
Traditional active management has been receiving increasingly tough press thanks to its high costs and apparent failure to outperform index tracking funds over the long

Active vs passive performance – bonds
The common wisdom in the investment industry is that whilst passive investing may work for equities, fixed income is a completely different ball game. Various

Active vs passive performance – real estate
Real estate is often overlooked in the active/passive debate, with most of the focus having fallen on equities and bonds. Real estate hasn’t been explored

Active vs passive performance – Emerging Markets
The conventional logic is that emerging markets are so rife with pricing inefficiencies (due to fewer analysts and active managers) that active management should be

Active vs passive performance – Japan
“NOW SHOW JAPAN” is commonly shouted (over the internet) by people looking to debunk an investment strategy. Japan is notorious for being the exception to

Active vs passive performance – Europe
The outperformance of passive funds continues in Europe, with the majority of active funds underperforming their benchmarks over the last 10 years according to both