Factor-based ETFs

Factor-based ETFs are investment funds that aim to deliver better returns by focusing on specific characteristics, or "factors," that have historically influenced stock performance. Common factors include value (buying undervalued stocks), momentum (stocks trending upward), or size (smaller companies). By selecting stocks based on these factors, these ETFs attempt to outperform the broader market or achieve specific investment goals. They provide a systematic way to diversify and implement investment strategies centered on proven market drivers, making them useful tools for investors seeking targeted exposure beyond traditional index investing.