Should Multifactor ETFs Try to Time the Market?
The case for funds that rotate their factor exposures is strong, but for now investors may be served with a static allocation.
This article was published in the October issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestorby visiting the website.
Market-timing is notoriously difficult. Even defining “market-timing” is tough. To some investors, market-timing is pulling out of the stock market before a crash. To others, it’s staying fully invested, but shrewdly shifting money to asset classes or sectors projected to outperform, and avoiding or underweighting those expected to underperform.
Adam McCullough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.