2018 Q3: Factor Performance in Review

In Q3, we saw a continued strong run by US equity indices relative to their active and factor-based counterparts. This comparatively strong index performance has been a outlier relative to recent…


What's a Monte Carlo Simulation?

We can’t predict the future, so where do we put our money?Every investor understands that investing involves uncertainty. Next year might be choppy or it might be smooth. The market might be up,…


The second most important thing when selecting an ETF

Q&A with Vijay Vaidyanathan, PhD, CEO at Optimal Asset Management   Q: What are the most important considerations when selecting an ETF? Should fees be considered? A: For most investors,…


Turkey/Lira Aug 2018 Crisis Update

Optimal Asset Management has been managing a smart beta Emerging Market Small Cap strategy for nearly five years (the strategy went live in October, 2013). In light of the recent turmoil currently…


When does Tax-Loss Harvesting with Direct Indexing Work?

Investing directly in the stocks underlying an index through separately-managed accounts opens up numerous benefits unavailable through pooled vehicles such as ETFs or mutual funds.  Of these,…


Direct Indexing: Not just for Institutions Anymore

Direct Indexing is gaining traction as an attractive equity investment alternative to many different types of investors, beyond the traditional large institutional class. Direct Indexing is simple,…


Universes Factor Allocator

Dynamic Alpha Recent Signal Switch

Monty Joshi, portfolio manager at Optimal Asset Management, takes a closer look at the benefits of factor timing to deliver low cost, data-driven alpha. Optimal Asset Management’s Dynamic Alpha…


Worried about market volatility? Watch this TV show from 1987

If you're watching CNBC, Bloomberg TV, reading Barrons or the Wall Street Journal or even just cruising Google or listening to the pundits anywhere else this past volatile week, you'll know that this…


Factor Allocator Newsfeed

2017 Year End Factor Model Report

Monty's year-end wrap up of Factor Performance was released last month, and if you missed it, you can access the full report here The tl;dr version is: Factor portfolio returns dispersion is very…


Universes Factor Allocator

Q3 Factor Model Report

Momentum maintained its status as the strongest individual factor among the Optimal suite of factors for the third quarter of 2017. Optimal Portfolio Manager, Monty Joshi, highlights this in his Q3…