Four Factors | ViaFour-Robo Advisor,Digital Advisor,Factor Investing

definition: Factor Investing — investment strategy in which securities are chosen based on attributes that are associated with higher returns.

 

Factors Of Higher Returns

  • Size: Investing in smaller companies offer higher expected returns than investing in larger companies.
  • Value: Value companies (low price/book) offer higher expected returns than growth (high price/book) companies.
  • Momentum: Using momentum offers higher expected returns.

Market

“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffet

Value

Nobel Prize winning research shows value stocks have historically outperformed the market by 5% since 1926.

Size

Nobel Prize winning research shows small company stocks have historically outperformed the market by 3% since 1926.

Momentum

Academic research shows momentum based investing can increase returns.

Higher returns over time

ViaFour incorporates factor investing to globally diversified portfolios to increase returns.

Our portfolios have higher exposure to the small and value stocks to capture the higher expected returns from these factors.