Factor investing

Help clients add more precise exposure to their portfolios with our suite of factor-based investing options.

Why Fidelity for factor investing?

Factor-based investing can offer insight into historical risk and return drivers, help target precise exposure, and express investment views—all while managing unintended risk. Your clients’ portfolios may benefit from the strength of Fidelity’s factor lineup, which is backed by:

Decades of fundamental research

Our quantitative teams evaluate and analyze decades of bottom-up, security-level data to inform our factor definitions.

Systematic tools and quantitative expertise

Our quantitative teams use fundamental data to systematically verify which factors have outperformed in the past, so they can build models to help them generate new investing ideas. 

Optimal construction

Our factor strategies aim to manage asset-specific risk and high portfolio concentration, with a neutral size exposure that helps avoid unplanned sector bets.

What are the most common factors?

Factors can help describe a security’s risk and return profile more precisely. Here’s the market exposure each factor offers.

Style factors

These factors help explain risk and return within asset classes.

Value: Securities that are inexpensive relative to fundamentals
Quality: Financially healthy companies
Low Volatility: Lower-risk securities
Momentum: Positively trending securities
Dividend Yield: Securities that pay higher dividends
Size: Smaller, potentially more agile companies

Macro factors

These factors help explain risk and return across asset classes.

Inflation: Rising prices can affect inflation-sensitive assets
Interest Rate: Lower interest rates can result in better returns for certain assets
Credit: Higher default risk can be rewarded over time

Factor investing at Fidelity

Learn how to use factors in portfolio construction.

Fidelity's Differentiated Approach to Factor Investing
Learn more about Fidelity Factor ETFs with quantitative analyst, Bobby Barnes.
Thematic investing

Explore the ways thematic investing helps clients enhance their portfolios and align their investments with what matters to them.

Want to know more?

Let’s talk about factor investing solutions for your clients.