FYI: My ETF.com post of March 8 discussed the research findings of Itzhak Ben-David, Jiacui Li, Andrea Rossi and Yang Song, authors of the November 2018 study “What Do Mutual Fund Investors Really Care About?” They found that naive retail investor fund flows are driven by Morningstar ratings and raw recent returns (neither of which are adjusted for risk/exposure to common factors found in asset pricing models).
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-performance-chasing-factor-returns
