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

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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.