Factor indexing: Harnessing smart beta for success in Chinese equities

Factor investing has proven to be an effective and efficient mechanism in recent months to make the most of the diversity offered by China’s fast-recovering stock market while the global economy struggles under the weight of growing coronavirus cases.

The growing use of factor index data in the portfolio construction process and the continual increases in the size of assets tracking these indexes serve to emphasize the success of factor investing. Further, our analysis shows [see charts below] that Quality and Momentum factors, in particular, outperformed the parent FTSE Russell benchmarks in both the China A and non-A shares markets.

Read the full blog post now at the link below