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Did you know:The average of four S&P500 Factor Indices out-performed the S&P500 by 2.5% Annualized from 1996 to 2017?

Astonishingly, they did so with lower volatility than the S&P500?

Decades of Nobel Prize winning academic research has suggested that factors drive returns.

Indeed, between 1995 and 2017, the average of the S&P500® Value, Momentum, Low-Vol and Quality factors beat the S&500® benchmark over 2.5% annualized, and did so with lower risk!


(Source: Historical Data from S&P Dow Jones, Jan 1996 – Dec 2017, equal weighted average of the 4 top-quintile factor portfolios from S&P Dow Jones Inc. Please consider these detailed disclaimers about historical data from S&P before investing. All investing including investing in stock market indices involves risk and you may lose some or all of your original investment).

Why Factors?

Decades of academic research overwhelmingly suggest that the underlying drivers of returns are a small number of factors. Just as healthy eating requires us to control the nutritional content of our food, healthy investing requires us to get health factor exposure.

Optimal builds factor portfolios designed to provide systematic, low-cost exposure to academically vetted factor premia, specifically the Market as well as Low-Vol, Momentum, Quality, Size and Value factors, and offers world-class Factor Portfolios built by S&P Dow Jones Inc. based on the S&P500. The average of the four major S&P500 Factor Indices (Value, Quality, Low-Vol and Momentum) have out-performed the S&P500 by approximately 2.5% annualized over 1996-2017 – excess performance that most investors will not want to ignore!