Hey ETF enthusiasts
I’m 38 and just getting started with investing. Over the past 15 years, I didn’t put any money into the markets. Instead, I focused all my energy on paying off my house, and I’m proud to say I did it (House made a theoretical 3x). Now I’ve got a decent monthly budget ready to invest.
I’ve totally fallen in love with factor investing. I’ve been reading about it for years now, diving into books, articles, and even some research papers. The whole concept of tilting toward factors like value, momentum, quality, size, and low volatility just clicks with me. It feels like a smart, data backed way to maybe beat the market in the long run.
I’m hoping for some input as I put together my plan:
Which factors do you think work well together? I’ve read that value and momentum can balance each other out, but I’d love your takes on combos that might lower risk or boost returns.
For a newbie like me who’s only read about this stuff so far, would you suggest a core satellite setup? Like a broad market ETF as the main part, with factor tilts around it? Or should I go all in on a pure factor portfolio?
And on rebalancing, what’s your advice? Quarterly, yearly, or maybe when things drift by a certain amount?
Any tips that fit well with factor investing?
Thanks a bunch for your thoughts. I really value the insights here.
Best regards
Ray