News & Research

For the past 20 years, a multi-factor strategy as targeted by the STOXX Europe 600 Industry Neutral Ax Multi-Factor Index has fared extremely well, and much of that consistent performance can be traced to the benefit of diversifying across different sources of return premia.

We talk to Abhishek Gupta, FlexShares’ Senior Quantitative Strategist, about the company’s new ETFs covering low volatility and high dividend strategies in emerging markets. The funds, which track STOXX indices, include Northern Trust Asset Management’s proprietary quality and ESG screens, as well as climate filters, aimed at helping improve risk-adjusted returns.

Chris Huemmer, Northern Trust Asset Management’s Senior Investment Strategist, discusses his firm’s innovative ETFs tracking multi-factor, ESG and climate strategies, and the role of an index provider in wrapping up a holistic investment approach.

ESG integration, sustainability, and impact investing…While there may be overlap in the meanings of these terms, they each represent a distinct approach to “doing well while doing good” in investor portfolios.

The new futures track 12 STOXX® Industry Neutral Ax Factor Indices covering the European and US markets, which employ an optimized methodology to control factor exposures, diversification and tradability. Zubin Ramdarshan from Eurex and Qontigo’s Hamish Seegopaul explain why the futures offer a unique vehicle for market participants seeking factor-based strategies.

The STOXX Industry Neutral Ax Factor Indices were introduced in February and leverage Axioma’s advanced portfolio-construction tools and risk models. They provide a robust choice for investors looking to reduce unintended exposures and access the return of factors.

By selecting high-dividend stocks within universes screened for responsible-investing principles, the new suite broadens the possibilities for investors and showcases the versatility of index-based strategies.

A new variation of the STOXX Factor Indices, which leverage Axioma’s proven factor models, further restricts sector diversions from the benchmark.

Returns since Nov. 9 show investors’ ideas about the economy have flipped, favoring Value stocks against the Momentum factor.

The third quarter saw a continuation of 2020’s themes for the STOXX® Factor Indices. Signs of renewed life have appeared, however, with Multi-Factor seeing a 0.8% return.

The cost of implementing factor strategies appears at only a fraction of the premia they generate, suggesting they can take significant inflows before reaching full capacity.

The STOXX Global 1800 Index rises in month, helped by continuing strength in US shares and a slump in the dollar.