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ETF Specialist

Playing Favorites With Multifactor ETFs

Playing favorites here is difficult given that each of these strategies is designed to deliver somewhat different outcomes.

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The article was published in the August 2016 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor by visiting the website.

In last month's issue, I outlined the case for multifactor exchange-traded funds. This month, I'm naming names: I will take a look at a select group of true-blue multifactor ETFs that invest in large-cap U.S. stocks. I will call out some nuanced but crucial differences in how their underlying indexes are built and what they imply for these funds' risk/return profiles. Finally, I'll name my favorites from this list.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.