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Regional Factor Performance Can Diverge Sharply
- Geographic diversification matters: Canadian value outperformed U.S. value by about 5.5% annually over the last ten years.
- A single-market narrative (U.S. growth) misses regional factor differences that affect portfolios.
Rebalance Regularly Across Factors
- Rebalance fixed allocations across factors to sell high and buy low automatically.
- Regular rebalancing increases expected returns and lowers portfolio volatility over time.
Index Fund Flows May Be Normalizing
- U.S. flows into passive funds slowed sharply in early 2018, dropping ~44% versus prior-year pace.
- That slowdown likely signals a leveling off of index growth, not a reversal to active dominance.