By: Tom Goodwin, senior research director
Investors’ interest in smart beta has increased significantly in recent years, with a specific focus on factor investing. By some counts, more than 300 factors have now been "discovered". But in a zoo of 300, how can anyone sort through the herd to reach a Noah’s Ark of sustainable species that will generate a complete factor universe of sturdy, long run return premiums? Here, we outline the process at FTSE Russell.