Symmetry Partners Blog

The Factors of Investment Returns

Written by Kevin Pallotti | Apr 20, 2021 6:00:00 PM

No one can predict the future with total certainty.

But, when it comes to investing, you can significantly improve your odds of long-term success via Factors of return.

Not all stocks (or bonds) are created equal. Certain characteristics--or factors--have been identified by extensive academic research as offering the potential for:

1)Higher returns over time

2) Reduced risk

So what is a factor of return?

Just as a great athlete’s success depends on the right skills such as agility, persistence, strength, flexibility, speed …portfolio returns depend largely on the right factors such as Small, Value, Momentum, etc.

At Symmetry, our Evidence-Based investment approach draws on decades of data, analysis and insights from some of the best minds in finance and academic (including 12 Nobel Laureates) to identify, what we believe are, the most effective factors for investors to include in their portfolios.

Watch the 3:30 minute animated video below to learn how factors of return can provide a solid foundation for what we believe to be a better, long-term, investment experience.

 

Symmetry Partners, LLC, provides this communication on this site as a matter of general information. Information contained herein, including data or statistics quoted, are from sources believed to be reliable but cannot be guaranteed or warranted. Nothing on this site represents a recommendation of any particular security, strategy, or investment product. The opinions of the author are subject to change without notice. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content on this site is for educational purposes and should not be considered investment advice or an offer of any security for sale. Please be advised that Symmetry Partners does not provide tax or legal advice and nothing either stated or implied here on this site should be inferred as providing such advice. Symmetry Partners does not approve or endorse any third party communications on this site and will not be liable for any such posts.

Diversification seeks to reduce volatility by spreading your investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market.