I suggest that we share opinions about multifactor investing here. After taking a look at the 2018 edition of Gerd Kommer’s book “Souverän investieren” I got interested in this topic again (my first acquaintance with Larry Swedroe’s book “Your Complete Guide to Factor-Based Investing” was pretty overwhelming for me).
How much does it make sense to invest in a mutifactor way? How to combine factors properly? The famous proponent of this approach Larry Swedroe is making a point that you could leave a greater percentage of you money in “safety” (like cash or non-stock 3d pillar) and then take a greater risk (with hopefully some reward) with multifactor ETFs. That would be a nice thing for a low risk tolerant investor like myself.
I’ve been looking at these candidates for a simple portfolio:
(RODM or INTF) + (USMF or LRGF or VFMF) + EMGF
or
IFSW (without EM)
or all-inclusive
ACWF
Any opinions or experiences with multifactor ETFs?