Factor Investing Explained [Small Cap Value Tilt?]

Описание: Higher Returns? Academic Research? Is factor investing right for you?

#FactorInvesting #MultiFactorPortfolio #SmallCapValueTilt

--- Follow up Videos:
Should You Invest in International Stocks?    • Should You Invest in International Stocks?  
Three-Fund Portfolio [The BEST Portfolio!]    • Three-Fund Portfolio [The BEST Portfolio!]  
S&P 500 vs Total Stock Market?    • S&P 500 vs Total Stock Market?  [VTI vs VO...  
Tax-Efficient Asset Allocation [5 Steps to Avoid Taxes]    • Tax-Efficient Asset Allocation [5 Steps to...  

--- Referral Links
Get $20 when you try Personal Capital (when linking an investment account): https://pcap.rocks/n55809
Get a $300 bonus, 6% back on groceries, 3% back on gas: http://refer.amex.us/NICHODReH5?xl=cp19
Get a $200 bonus, 5% back on groceries, 3% back on dining:
https://www.referyourchasecard.com/18...
Get $30 and cash back when shopping online: https://www.rakuten.com/r/ENJAYD2?utm...

Great Books for Financial Independence
Bogleheads’ Guide to Investing: https://amzn.to/3KOcRB7
Bogleheads’ Guide to the Three-Fund Portfolio: https://amzn.to/33UuBu1
Asset Protection: Concepts and Strategies for Protecting Your Wealth: https://amzn.to/3oarULI
Retirement Planning Guidebook: https://amzn.to/3skso3h
All About Asset Allocation: https://amzn.to/34gLIG4
Equity Valuation and Analysis: https://amzn.to/3g9LKSM

Disclosure: Referral links this are affiliate links. At no additional cost to you, I might earn a commission if you make a purchase.

--- Outline
00:00 Intro
In this video, I will explain factor investing, share a couple funds and ETFs, backtest an example portfolio, and share my thoughts.

00:48 What is Factor Investing?
Factor investing is based in academic research and is pitched as a way to add diversification to different risks. Some of the more common factors are size and value. We discuss the fundamentals and why factor investing may lead to better diversification and returns. We also briefly look at how much of the factor premium can be attributed to risk vs behavior.

05:28 Example Portfolio
We look at an example portfolio using a small cap value tilt and backtest it against a market-cap weighted portfolio. Over 24 years, how did the factor strategy affect the returns?

The example uses a couple funds from DFA: DFSVX & DISVX
A couple alternative ETFs from Avantis are: AVUV & AVDV

These are simple funds for adding a small cap value tilt to a core portfolio.

08:48 Challenges and Risks
Factor investing could have some challenges and risks. Some of these are implementation challenges, higher fees, and possible overcrowding.

13:41 My Thoughts
I started out with a factor strategy in my portfolio, but ended up removing it after a couple months. I share the details on why I did this.

---
Disclaimer: I am not a financial advisor. My videos are for educational purposes and are my opinions. You should seek advice from a professional advisor or perform your own research. There is no guarantee you will be successful following my opinions.