Why Factors?

  • Unique Risk Premia

    Over the long term, factors can offer their own return beyond what the market provides.

  • Diversification

    Because historically, factors have exhibited relatively low correlations, they can be helpful in diversifying a portfolio.

  • Risk Management

    Factors strategies can help investors achieve specific goals, such as risk reduction over the long-term through diversification or by isolating distinct market characteristics.

The Factor Spectrum

Styles Tailored to Your Needs

S&P Style Indices

S&P Style Indices provide broad exposure and are market-cap weighted. This approach makes them relevant benchmarks for evaluating the skill of active managers, and suitable for those seeking traditional “buy-and-hold” index-linked investments with a tilt toward a particular style.

S&P Pure Style Indices

S&P Pure Style Indices have a stricter definition of growth and value, resulting in more-concentrated style exposures for market participants seeking precise tools. Unlike the standard style indices, they are style-score weighted, and there are no overlapping securities between growth and value.

S&P Enhanced Value Indices

S&P Enhanced Value Indices measure top-tier stocks by value score, and account for both market cap and value score in their weighting.

Factor Effectiveness

Multi-Factor Indices: Combining Factors

Benefits of Multifactor Indices

A History of Factor Innovation

Research & Insights

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    The Merits and Methods of Multi-Factor Investing

    Are multiple factors better than one?

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    Distinguishing Style From Pure Style

    The S&P Style Indices and S&P Pure Style Indices have distinct risk/return characteristics due to their methodological differences.

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    Blending Factors in Your Smart Beta Portfolio

    What are the potential benefits of different multi-factor approaches?

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    The Beauty of Simplicity

    How does the S&P 500 Low Volatility High Dividend Index compare to other dividend approaches?

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    Adapt to Changing Market Conditions: S&P Economic Cycle Factor Rotator Index

    Look inside a dynamic factor rotation strategy designed to time factors in different phases of the business cycle.

Factor Tools at Your Fingertips

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