Factor outperformance in real life?

Discussion in 'ETFs' started by Maverick2608, Sep 27, 2018.

  1. Eugene Fama introduced the three-factor model in 1993. Today, more than USD 1 trillion is invested in an explicitly factor-based fashion.

    My question:
    Can a factor fund /smart beta fund be identified that has outperformed the market for more than two decades? What about 15 years? 10 years?
     
  2. PistolPete

    PistolPete

    beta and outperformance ??
     
  3. srinir

    srinir

    This one is easy.

    You can look up the Eugene fama inspired firm, where he is a board of director.

    Out-performance over market over last 25 years

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    Maverick2608 likes this.
  4. Even if factor investing has been working for the past decades, who says it will continue to work? If everybody is piling in, like many funds seem to do now, then the effect should go away common sense says.
     
    Last edited: Sep 29, 2018
    Maverick2608 likes this.