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Are Sector Bets Ruining Your Factor Exposure?: (VLUE) _ (IVE)
FYI: Factor investing is supposed to give investors exposure to only the characteristics they want. But it doesn’t always quite work that way.
Yes, factor investing captures individual traits, such as size, style, past performance, and the like. But it also comes with an inherent sector bias. Value stocks—the market’s cheapest—tend to have a large position in financials. Growth stocks—the market’s fastest growing—tend to load up on technology. And low-volatility stocks—the ones with the smallest price moves—tend to overweight utilities. Regards, Ted https://www.barrons.com/articles/are-sector-bets-ruining-your-factor-exposure-1539895830?refsec=factor-investing
