FYI: Multifactor funds are among the most complex index investments, more closely resembling active than passive management. As such, it is necessary to apply a similar level of rigor to evaluate their portfolio-construction processes. In June, Morningstar’s Manager Research team published “A Framework for Analyzing Multifactor Funds.” What follows is a summary of that framework, which should help investors assess these funds’ approaches to portfolio construction to better navigate the landscape.
Regards,
Ted
https://www.morningstar.com/articles/882368/a-framework-for-analyzing-multifactor-funds.html
