John DeGoey
iShares FactorSelect MSCI EAFE Index ETF
XFI-T
COMMENT
Jun 08, 2017
He is a huge proponent of factor investing. It is a really good way of getting exposure to a broad market. You tilt towards those factors that historically have gotten better risk adjusted returns. Small companies outperform large ones, value companies outperform growth companies. When you tilt towards those things, you tend to get a return that is slightly more variable than the market, but a return that is moderately higher than the market.
Factor products that iShares are putting out are doing well. Factor investing has done quite well in 2016. The slight problem might be that Europe had a less good year, relative to Canada. He likes the product.
A long/bull ETF if China outperforms other markets with a 1-3 year outlook It's liquid and has options if you want to sell covered calls. China is an interesting play now after taking a big hit from US tariffs, but recovering now after the G20 summit. He doesn't agree with Trump's methods, but with his end-game, which is getting China to play fairly.
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He is a huge proponent of factor investing. It is a really good way of getting exposure to a broad market. You tilt towards those factors that historically have gotten better risk adjusted returns. Small companies outperform large ones, value companies outperform growth companies. When you tilt towards those things, you tend to get a return that is slightly more variable than the market, but a return that is moderately higher than the market.