Finding Value: Understanding Factor Investing
Research Paper
July 9, 2015
Preview
The perennial appeal of value investing is based on the excellent long-term performance of global value stocks. Investors today use various approaches to identify the exposure of stocks with "value" characteristics that help explain risk and return. In this Research Insight, we create a common definition of "value" and examine how value strategies can be implemented, in both active and passive portfolios, using three generations of value indexes as examples.
Regional performance of the MSCI Enhanced Value Indexes
Returns are gross and are stated in USD relative to the regional parent. Emerging market (EM) returns start in January 1993. Data period is 1976-2022.
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