FYI: Building an exchange-traded fund can be like baking a layer cake. But when the layers are “factors,” the cake may not be as sweet as it looks.
Factors are ways of describing how stocks behave, and they form the basis for 518 ETFs with $759 billion in assets, according to FactSet Research Systems. Multifactor ETFs combine fundamental elements (like value and growth) with technical stock attributes such as price momentum and volatility.
Regards,
Ted
https://www.barrons.com/articles/how-to-spot-the-best-multifactor-stock-etfs-51556311337?refsec=funds
