Factor Investing Explained: The Data Behind Small, Value, and Profitability

Digging deeper into the data on equity factors can help understand why certain companies have tended to outperform other companies. Past performance can help us gain understanding, but it is no guarantee of future results.

Over the last nearly 100 years small companies and value companies have outperformed their large and growth counterparts. However, this has not been the case in the last ten years. When we consider an evidence-based approach to investing, we can use this data to guide our thinking when constructing portfolios.

Join us as we discuss the data behind the equity factors of size, value, and profitability.

Timestamps:
0:00 Evidence based investing
0:49 Performance disclosures
1:55 Dice probability
4:45 Rolling performance premiums
7:20 Value vs. Growth
8:00 Small vs. Large
8:40 High Profitability vs. Low Profitability
10:20 Premiums across geographies
11:15 Premiums since 2013
13:24 Past performance does not guarantee future results
13:50 Disclosures

Advisory services offered through Retirement Planning Services, LLC.

The information in this recording is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.