Checking in on Factor ETF Performance (5 min read)
Factor ETFs are one of the most popular strategies you see on the market. Factor is simply an area of characteristic the investment focuses on. It can be value, low size, momentum, low volatility, dividend yield, etc. Although there are many factors that exist, only a handful of them managed to outperform the broader market. This article compares the largest ETFs in the most popular factors (Value, Growth, and Dividend) with their plain vanilla counterparts. Some did outperform but it is very dependent on the time horizon and how the ETF captures the factor.