MSCI Factor Mix A-Series Indexes
Multi-strategy indexes that capture the quality, low volatility and value factors
Within multi-factor indexes, choice is critical. Through top-down and bottom-up approaches, multi-factor indexes capture optimal exposure to a diversified set of factors. The MSCI Factor Mix A-Series Indexes are designed to represent the performance of quality, value and low volatility factor strategies. These factors have outperformed over long horizons, however are cyclical and lowly correlated therefore create diversification benefits.
Primary benefits of the MSCI Factor Mix A-Series Indexes:
- Parent index construction rules offers liquidity and free float screening
- Provides efficient and controlled exposure to targeted factors and minimizes unintended exposure dilution in a single portfolio
- Offers strong historical risk adjusted performance
Featured indexes
Factor Mix A-Series index characteristics
The foundation of value investing is the idea that cheap assets have historically outperformed expensive, on average, in the long-term. Value is pro-cyclical, meaning it has tended to perform well in periods of economic expansion.
Graham and Dodd's Margin of Safety:
Price of the firm is less than conservative estimates of cash flow generated from the firm's assets.
How does MSCI target value?
MSCI uses a combination of Price to Earnings (66%) and Price to Book descriptors (33%).
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MSCI Factor Indexes
MSCI Factor Indexes seek to reflect the performance characteristics of a range of investment styles and strategies using transparent and rules – based methodologies.
