Displaying items by tag: factor investing

The Franklin U.S. Large Cap Multifactor Index ETF (FLQL), launched by Franklin Templeton in 2017, provides broad exposure to the U.S. large cap blend market by tracking the LibertyQ US Large Cap Equity Index. With $1.56 billion in assets under management and an expense ratio of just 0.15%, FLQL is a low-cost option for investors seeking diversified exposure to large, stable companies combining value and growth traits. 

The ETF emphasizes information technology, healthcare, and telecom, with top holdings including Nvidia, Microsoft, and Apple—its top ten positions making up over a third of the portfolio. 

Its strategy uses a multifactor model focusing on quality, value, momentum, and low volatility to outperform traditional benchmarks like the Russell 1000 over time. Year to date, FLQL has returned 10.89% and nearly 18.52% over the past year, with a beta of 0.94 and 217 holdings to help mitigate company-specific risk. 

Finsum: For those comparing alternatives, SPY and VOO are larger and slightly cheaper S&P 500-tracking ETFs, but FLQL offers a unique multifactor approach worth considering.

Value investing, long championed by legends like Warren Buffett, has historically delivered strong long-term returns. However, in the past decade, growth stocks have significantly outpaced value due to low interest rates inflating the valuations of high-growth companies. 

From 2011 to 2020, large value funds underperformed growth funds by more than five percentage points annually, and in 2020 alone, the gap was a striking 32.2%. Although value outperformed in 2022, the trend reversed in 2023 and 2024, with growth indexes returning over 40% and 33%, respectively, compared to value’s 11.5% and 14.4%. 

Still, investors looking for long-term value exposure can consider top ETFs like the Vanguard Value ETF (VTV), iShares Russell 1000 Value ETF (IWD), and Vanguard Small-Cap Value ETF (VBR). 

Finsum: These funds offer broad diversification, low expenses, and dividend yields making them attractive options for value-focused portfolios.

Value investing pays off long term, but only a few funds consistently get it right—seven top performers just made the cut. Standouts like ClearBridge Dividend Strategy (LCBEX) and Dodge & Cox Stock (DODGX) delivered strong one-, three-, and five-year returns, outpacing peers with disciplined, research-driven approaches. 

Fidelity Equity-Income (FEKFX) and Fidelity High Dividend ETF (FDVV) combine yield with quality, offering income without overloading on risk. 

Oakmark Select (OANLX) and Natixis Oakmark (NOANX) take concentrated bets on undervalued giants, while WisdomTree U.S. LargeCap Dividend (DLN) adds a smart dividend tilt with broad exposure. On average, large-value funds gained 8.58% over the past year, but these funds beat that benchmark while sticking to sound fundamentals. 

Finsum: With interest rates remaining elevated, large cap could be more resilient compared to the small cap counter parts. 

Value investing pays off long term, but only a few funds consistently get it right—seven top performers just made the cut. Standouts like ClearBridge Dividend Strategy (LCBEX) and Dodge & Cox Stock (DODGX) delivered strong one-, three-, and five-year returns, outpacing peers with disciplined, research-driven approaches. 

Fidelity Equity-Income (FEKFX) and Fidelity High Dividend ETF (FDVV) combine yield with quality, offering income without overloading on risk. 

Oakmark Select (OANLX) and Natixis Oakmark (NOANX) take concentrated bets on undervalued giants, while WisdomTree U.S. LargeCap Dividend (DLN) adds a smart dividend tilt with broad exposure. On average, large-value funds gained 8.58% over the past year, but these funds beat that benchmark while sticking to sound fundamentals.  

Francois Rochon once observed that true investing success comes not from avoiding market volatility but from using it to one’s advantage—a mindset that resonates deeply today. 

Markets, by nature, swing between extremes, and the recent months have been no exception, testing the patience of even seasoned investors. Rather than reacting emotionally to these shifts, investors are increasingly turning to structured approaches that bring consistency to decision-making. 

One such approach is factor-based investing, which allocates capital based on specific attributes like profitability, low volatility, or long-term momentum. This strategy reduces reliance on market timing and instead builds portfolios grounded in time-tested characteristics. 

Finsum: In uncertain environments, such disciplined frameworks can offer clarity and help investors stay focused on enduring outcomes rather than short-term noise.