Which investment factors are performing best?

Factor investing is the use of certain characteristics of stocks to generate extra returns compared to the benchmark index. Momentum, low volatility and quality are among the best known and most widely used factors. Much research has shown that there is a relationship between factor investing and the business cycle. This means that investors can use information about economic trends to choose which investment factor to focus on. And, by the same token, we can learn something about a country’s business cycle from investors’ choices.

In our analysis, we try to identify which investment factors are outperforming and what the trends are. We have also included ESG in our analysis.