This is a second article on our ETF Systematic Strategies and a follow-up to our first article on momentum. Our systematic strategies are based on a risk factor approach, which can be further explored here and stands apart from fully active and fully passive investment styles. What underlies these strategies is a sound economic rationale, pre-defined investment rules, and evidence of long-term outperformance of passive benchmarks.
What brought us to systematic strategies is a suspicion of a consistent ability to forecast the path of asset returns. It is a combination of this humility and a