Global X is featured in Investment News with an op-ed on why we think 2016 could be the year that multi-factor ETFs take off. Various valuation and economic models anticipate a low growth environment in the near future. We believe this environment makes low cost multi-factor strategies that can potentially deliver outperformance versus a cap weighted benchmark very attractive to investors. Not all multi-factor strategies are the same, however, and investors need to dig into the details to understand the differences.
Key questions to consider include:
- Which factors does the strategy target and how does it define each factor?
- How does the strategy combine its multiple factor exposures?
- How transparent is the strategy?
- Is the strategy sufficiently diversified?
Explore this link to read the Op-ed in Investment News