How to Invest Using a Factor Approach

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Investing using a factor approach makes sense, but some investors don't know where to start. We always want to start with what is the theoretical basis for why I should see this factor in the first place. If it means having higher expected returns than the market, these are the kind of considerations investors need to have. The other thing about these factors is that they're pretty applicable across the market.

IN THIS EPISODE, YOU’LL LEARN:

06:10 - How to think about constructing a well built portfolio using factor ETFs.
06:35 - How to improve your expected returns through investing in factors.
10:37 - The differences between single factor vs multi factor exposure ETFs.
13:41 - Understanding the tradeoff between expected return and diversification when adding additional factors.
34:29 - A framework to help you evaluate if an investment belongs in your portfolio.
42:51 - Assets that historically have provided a hedge against expected and unexpected inflation.
51:59 - What typically happens to stocks of companies that grow to be the largest in the market.
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Related Episode: High Returns From Low Risk Investing w/ Pim Van Vliet - MI221.

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