Factors are broad, persistent drivers of return, present both across and within asset
classes. Factor investing targets these intuitive investment styles, seeking
to take advantage of economic insight, diversification and efficient execution.
Quality, Momentum, Value, Size, and Minimum Volatility have historically been
drivers of returns across asset classes. Because they are driven by different
economic rationales, they have tended to outperform at different times. For investors
with a shorter time horizon and a reasonable appetite for risk, this cyclicality presents
an opportunity to tilt portfolios toward one factor versus another in pursuit of
incremental returns.