IJR - How To Beat The Market By As Much As The Typical Investor Underperforms
Much of the asset management industry is currently focused on delivering "smart beta" with low fees. The main approach currently in use is to find factors that have historically outperformed the broader market and tilt portfolios towards them. The underlying premise is sound, but the implementations sometimes fail due to poor forecasting ability of the sponsors, transaction costs, or both. However, when used properly, factors of risk and return can be used across asset classes to build very strong portfolios. Let's take a quick look at some common factors in stocks, why they exist, and