Get active with Vanguard factor ETFs
29 August 2017 | ETF information
Factor investing has gained attention in recent years, in part because of the rise of alternatively weighted indexes and ”smart-beta” products. Yet factor investing has existed in various forms for many decades. One way to think about factors is as the DNA of an investment. They are underlying attributes that explain and influence how an investment behaves. By targeting these attributes, factor-based investments attempt to deliver an investment premium, such as market outperformance or reduced volatility.
Vanguard factor exchange-traded funds (ETFs) use a dynamic, rules-based active strategy to target the risk and return premiums of four well-documented factors. Our minimum volatility ETF aims to exhibit lower volatility than the global equity market while our value, momentum and liquidity ETFs seek market outperformance.
Find out more about each of these ETFs: