THE HUMAN FACTOR IN INDEX INVESTING

The skills and insight human oversight brings should play a crucial role in the index investment process.

The emergence of risk-factor investing and the evolution of traditional indexes have opened up fresh opportunities to bring human touch to what has traditionally been considered the passive exchange-traded fund space.

For most investors, particularly those seeking an outcome other than market exposure, it is preferable to plan for factor exposure rather than be subjected to it by market fluctuations.

A systematic factor approach offers the advantage of always knowing which factors are driving your index’s returns.

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