FYI: I love to barbecue outside on the grill. It hardly matters whether I’m cooking steak, pork, chicken, or ribs. But what does matter, for me, is the barbecue sauce. It has to taste distinctive. I like mine extra spicy.
Not all barbecue sauces are the same. Some are vinegar-based; others are created with tomato or mustard. Some have paprika; others use red pepper. How do you pick the one you want? There’s no benchmark or standard. You read the ingredients; you choose what you like. (Vanguard Global Chief Economist Joe Davis, a barbecue aficionado, always picks the right one.)
The same could be said for factor-based products. When you pick them for a portfolio, you are likely adding to an existing portfolio. You’re looking for a tilt on value, for instance, or to add an element of momentum.
Regards,
Ted
http://www.etf.com/sections/etf-industry-perspective/vanguard-your-preferred-factor-flavor?EXCMPGN=EX:PC:FAS:Sustaining
