Ratios support outperformance of the value factor

Factor investors are eyeing the flavour of the day, but they should be ready for market tastes to change

Ruth Saldanha 17 May, 2019 | 2:00PM

Earlier this month, Morningstar held the 2019 Morningstar Investment Conference, and factor investing was a prominent theme. Here in Canada as well, factor-based investment products have grown in popularity over the past few years. A form of active management, these funds exploit investment premiums such as value, momentum, yield or low volatility.

But where have investors been putting their money? Recently, flows have been higher in value ETFs, says Antonio Picca, Head of Factor-Based Strategies at Vanguard Quantitative Equity Group.

Valuable in slowdowns

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Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca