Factor Investing Explained: The Data Behind Small, Value, and Profitability

Digging deeper into the data on equity factors can help understand why certain companies have tended to outperform other companies. Past performance can help us gain understanding, but it is no guarantee of future results.

Over the last nearly 100 years small companies and value companies have outperformed their large and growth counterparts. However, this has not been the case in the last ten years. When we consider an evidence-based approach to investing, we can use this data to guide our thinking when constructing portfolios.

Join us as we discuss the data behind the equity factors of size, value, and profitability.

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.