Yes
I think - The factors are nothing but quantification of what happened in past. It’s basically people trying to explain market results
There was this very smart person Rational reminder once who said that most factors are very difficult to make money from because everyone knows about them and things get priced in.
I am curious though if ETFs tracking those factors actually started before the factors started outperforming or after.
Tomorrow someone can say there is a factor called Geography. And being an American company is a factor for outperformance . Then plot the chart of S&P 500 versus rest of the world and viola.
I checked the performance of Ishares MSCI world vs Ishares MSCI world quality. Outperformance means factor outperformed. All numbers are cumulative and not annualised
Source -: justetf
10 years -: outperformance of 1.3%
5 years -: underperformance by 9%
3 years -: underperformance by 2%
1 yr -: underperformance by 6.7%
