Part 4: Multi-Factor Design, Part 2—Keep a Handle on Trading Costs

March 2019
Part 4: Multi-Factor Design, Part 2—Keep a Handle on Trading Costs
Part 4 in a 4-Part Series
Joe Steidl, Vitali Kalesnik

Poor index design can lead to high trading costs for investors. Thoughtful implementation can mitigate these costs by using weighting schemes that promote liquidity, employing turnover-control mechanisms, and applying staggered rebalancing.

WATCH PART 1:

What Matters in Multi-Factor Investing

WATCH PART 2:

Ignored Risks of Factor Investing

WATCH PART 3:

Multi-Factor Design, Part 1—Mixing vs. Integrating

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