Factor investing is a strategy that uses specific attributes to determine the purchase or sale of investments. The strategy is designed to support diversification in a portfolio while still attempting to maintain return targets. The strategy selects multiple factors – macroeconomic, fundamental, and statistical – to scrutinize, analyze and ultimately inform an investment strategy.
Diversification is a goal of some investors, but diversification strategy – and how it is implemented – can be difficult to build and execute.
Annex Wealth Management works to identify and monitor factors to help inform portfolio allocation and investment selection decisions.