QFIP-155-21: Fundamentals of Efficient Factor Investing

The use of factor sub-portfolios may still have advantages for some investors

•Factor portfolios come prepackages, and the process of subsequently constructing a multifactor portfolio from subportfolio is generally less complex and easier to explain than constructing a multifactor portfolio directly from individual securities

•The performance of the separate factor subportfolios is easier to track and facilitates performance attribution in multifactor combinations

•Separate factor subportfolios allow the end investor to easily select the factors thought to  be more relevant and also allow for a simple reweighting of packages subportfolios

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