Factor based investing real-time Nasdaq trading data reveals

Real-time Nasdaq trading data reveals factor based investing models overweighting momentum captured 7% weekly gains on large-cap AI stocks. Market forecasters highlight this as a tactical response to bullish analyst coverage and positive forward P/E revisions. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Initially seen as retail products, equity factor ETFs are now widely used by institutional investors. These ETFs grew from $390 billion AUM in 2014 to $2.07 trillion in 2024 1 . They can serve various roles in portfolios, from making short-term portfolio adjustments to serving as long-term allocations. MERS of Michigan’s Chief Investment Officer Jeb Burns, S&P Dow Jones Indices’ Head of Factors and Dividends Rupert Watts and Invesco’s Head of Asset Owner ETF Specialists Garrett Glawe discuss the benefits of equity factor ETFs, which group stocks with similar characteristics to generate excess returns. Smart beta ETFs employing factor based investing in minimum volatility recorded net inflows for the fifth consecutive week. This was strongly correlated with the VIX rising towards 18, triggering defensive hedge allocations.