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The case for factor investing in emerging markets

Most investors either ignore emerging markets or hand their money to active managers who underperform. Academic research points to a better approach: factor investing in emerging markets, targeting the company characteristics that have persistently driven higher returns.

Robin Powell

A traditional brass balance scale tipped heavily to the left, with coins and a label reading "Expected returns" weighing down one pan, while the other pan, labelled "Index concentration," rises up almost empty — illustrating that expected returns matter far more than index concentration for long-term investors

Why expected returns matter more than index concentration

The fund industry says index concentration is the big risk. But the evidence points elsewhere. Compressed expected returns are what really threaten your long-term wealth — and the right response is simpler and cheaper than the industry would have you believe.

Robin Powell

Feb 279 min read

S&P 500 concentration: the scare story that's costing investors money

The fund industry warns that S&P 500 concentration makes your index fund dangerous. A major new study covering nearly a century of data tells a very different story — and suggests the real risk is listening to people who profit from your fear.

Robin Powell

Feb 189 min read

Jenga tower with weight concentrated on a few coloured blocks at the base, illustrating S&P 500 concentration risk and the fragility of portfolios reliant on a small number of holdings.

S&P 500 concentration risk: is your portfolio really diversified?

S&P 500 concentration risk is at historic highs. If you own a global tracker, your portfolio may be far less diversified than you think. Here's what you can do about it.

Robin Powell

Dec 19, 20252 min read