This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

https://www.barrons.com/articles/investing-factors-rob-arnott-51673919003

‘Pour Money’ Into Multi-Factor Strategies, Rob Arnott Says

By
Karishma Vanjani
  • Order Reprints
  • Print Article

Rob Arnott, chairman and founder of Research Affiliates, argues that most factors today are trading cheap relative to historical norms.

Tim Boyle/Bloomberg

In 2016, Research Affiliates Rob Arnott warned about the dangers of investing in multifactor strategies. Now, he says it’s time to buy. 

Multifactor strategies—as the name suggests—mean blending a number of factors or strategies with the aim to achieve outperformance over the long term. Funds can promise exposure to value, quality, and other traits. A value factor exchange-traded fund, for example, will pick the cheapest stocks within the S&P 500 while a momentum ETF will find stocks with accelerating prices.

Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.