Factor-based investors have to be aware of their portfolio’s time horizon and the fact that factor performance can be cyclical.
I believe the increasing popularity of ETFs is a case of innovation meeting opportunity. ETFs are expanding liquidity and growing the market. And rising demand for this investment vehicle is changing the market’s dynamics and driving innovation.
It’s clear that no single solution can dominate. Differing retiree preferences and financial priorities make a menu of solutions a more sensible approach.