FSMD - What You Don't Know About These Vanguard And Fidelity ETFs Can Hurt Your Alpha
2024-07-02 20:57:33 ET
Summary
- Vanguard offers factor-based ETFs that have shown outstanding performance compared to unmanaged, index-based comparison ETFs.
- Factor-based ETFs have now become mainstream investments, with a market share of over 20% globally.
- Assets under management for factor-based investments have grown significantly, leading many investors to include factor funds in their portfolios.
- Performance data for both long- and short-term factor ETFs from two of the biggest fund firms generally show excellent alpha performance.
In Oct. 2022 , I called investors' attention to the six actively managed stock ETFs that were part of Vanguard's huge lineup of passively managed ETFs. These ETFs are what is called factor or smart beta investments. (For a definition of factor ETFs, see this article .)...
What You Don't Know About These Vanguard And Fidelity ETFs Can Hurt Your Alpha