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Factor Investing

By default, anyone who buys stocks or stock funds automatically becomes a factor investor. Why? Because factors come along for the ride with every equity investment.

Factors are tilts on value, capitalization, volatility, and other traits that explain stock behavior. More than that, factors drive stock returns.

Analytic Investors is a quantitative asset manager that’s been at the forefront of factor-based investment strategies for more than two decades. Analytic Investors was recently acquired by Wells Fargo Asset Management (WFAM), helping lay a foundation for WFAM’s future as a provider of original and highly sound solutions clients deserve.

The Resource Center below offers the best of Analytic Investors’ thinking on factor investing—from foundational to published research. There’s bound to be information you can use, no matter what level of sophistication you require.

Factor-based strategies offer investors:

The potential to improve risk-adjusted returns

The opportunity to enhance performance across market cycles

The best of passive and active management

Resource Center

Low volatility resources

Factor focus: Low volatility

A low-volatility strategy has the potential to provide market-like returns with significantly less risk than conventional allocations, helping investors win by not losing.

The role of low-volatility strategies in asset allocation

Key considerations for low volatility investing

Analytic Investors addresses the rumors and realities of low-volatility stocks and suggests a long-term outlook.

Key Considerations for Low Volatility Investing

The role of low-volatility strategies in asset allocation

Learn how investors who allocate to low-volatility strategies may improve their asset allocation.

Exploiting the beta anomaly

Exploiting the beta anomaly

Analytic Investors’ research investigates sensitivity of the anomaly to the beta estimation technique.

Factor Investing resources

Analytic Investors: Passionate about factors

Learn how the Analytic team manages assets to help investors in the pursuit of long-term financial goals.

Managing factors: Time-tested techniques

An integrated and dynamic approach to managing factors requires innovative tools. Analytic Investors has built its tool kit over four decades.

Factors: A holistic view

Analytic Investors’ integrated approach provides balanced exposure—pure exposure—to the factors investors care about.

Analytic Investors: The role of factor-enhanced strategies

Our strategic beta approach balances risk across all factors to gain the diversification needed for a smoother ride.

Know the Facts: Not all Factor Portfolios are Created Equal

Know the Facts: Not All Factor Portfolios Are Created Equal

Learn about the essence of factor-based investing in just two pages.

Innovations in Factor Investing

Innovations in Factor Investing

Read a synopsis of the seminal work on factor investing by Analytic Investors’ research consultants and portfolio managers.

Pure Factor Portfolios and Multivariate Regression Analysis

Fundamentals of Efficient Factor Investing

Analytic Investors’ study shows that portfolios built directly from individual securities have captured most of the potential gain from exploiting a small set of factors (Financial Analysts Journal, 2016).

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Pure Factor Portfolios

Pure Factor Portfolios and Multivariate Regression Analysis

Using 50 years of data on 1,000 large U.S. stocks, Analytic Investors’ researchers explore interest-rate risk as an equity return factor (The Journal of Portfolio Management, 2017).

Low volatility investing: Win by not losing

Low-volatility exposure has been a powerful contributor to long-term outperformance, which potentially allows investors to keep more of what they earn.

More on low-volatility investing can be found in our Resource Center below.

Quick links

Wells Fargo Low Volatility U.S. Equity Fund (WLVOX, WLVLX)

Contact us

For more information about how to make the most of factor investing in your clients’ portfolios, call your dedicated sales team at 1-888-877-9275.