Research shows that certain kinds of stocks have outperformed the broad market on a risk-adjusted basis over the past 50 years. These include companies that are undervalued or small, have consistently rising stock prices, are less volatile, or are efficiently managed and consistently profitable.
In this edition of Envestat, we’re taking another look at the portfolio performance and examining outliers to determine what may be driving either positive performance or underperformance.
A select group of equity factors — value, small size, momentum, low volatility, dividend yield, and quality — has been the primary source of equity outperformance over the broad equity market for five decades. That should be exciting for investors, but the natural questions that follow are how and why? In fact, equity factors developed as a way to question the cornerstone beliefs behind passive investing.
Historically, style factors have been shown to deliver superior risk-adjusted returns to passive capitalization weighted indexes and more persistent performance than traditional active management, making them a compelling alternative for investors.
This Institutional Investor article highlights how the portfolio implementation of factors determines whether you are able to reap the benefits.
Access the latest thinking from T. Rowe Price's Asset Allocation Committee, comprised of some of our most senior investment professionals, so you have more actionable conversations with clients and gain insight into what’s resonating with other intermediaries.
Historically, growth and value have behaved differently across varying market environments, suggesting that investors may benefit from having a strategic allocation to both styles of investing. We build a case for why there’s a place for both in a portfolio.
Find out how Hermes’ in-house stewardship team, Hermes Equity Ownership Service (EOS), seeks to benefit shareholders around the world through engagement.
The US equity market staged a comeback during the first four months of 2019, posting gains of 19% and allaying investors’ market apprehensions.
We thought it might be interesting to take a look at the shifts advisors made in managed account investment programs in 2018. We wanted to see where assets moved and which programs were favored.