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

March 2019
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.