All About Factors & Smart Beta

This week’s commentary is a long-form presentation all about factor investing and smart beta.  We cover four topics. In the first section, we explore the basics of factors: what are they and where do they…

Sector Rotation and the Momentum Factor

Sector rotation is a popular investment strategy whereby managers actively reallocate capital from one investment sector to another based upon changing market conditions. There are many ways to run sector rotation strategy, including: business cycle…

Diversification in Multi-Factor Portfolios

The debate rages on over the application of valuation in factor-timing methods. Regardless, diversification remains a prudent recommendation. How to diversify multi-factor portfolios, however, remains up for debate. The ActiveBeta team at Goldman Sachs finds…