Investing Ideas

Putting factors to work

Three approaches to consider when implementing factor-based investment strategies.

By: Bobby Barnes Frank Nielsen Scott O’Reilly

Updated: 11/27/2023

Key Takeaways

A strategic allocation to a single factor-based strategy, or to a combination of factors, may help investors reap the potential long-term benefits of factors, and should be determined based on individual investment styles and objectives.
By varying factor exposures over time, investors can express investment views based on their cyclical outlooks or other criteria.
Factor-based strategies may also be useful in portfolio construction and risk management as tools to help investors manage aggregate exposures in their broader portfolios.

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Putting factors to work

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