The iSTOXX® Europe Single Factor and Multi-Factor Market Neutral Indices are made up of a long investment in one of six iSTOXX Europe Single Factor indices or in the Multi-Factor index, and a short position in STOXX Europe 600 Index futures.
Pure factor investing
Obtain pure factor exposure rather than a factor tilt
Systematic and tradable
Access the market hedge through the highly liquid STOXX Europe 600 Index futures
Low correlation benefits
Benefit from the low correlation between all factor strategies to the market, and within each other
Improve diversification and avoid single-sources of risk with the multi-factor strategy
Employ a multi-factor strategy that maximizes the aggregated exposure to all of the six factors, rather than employ a mere heuristic, i.e. equal-weighted, combination of them
Incorporate sustainable principles to the factor methodology with the STOXX® ESG-X Factor Indices, which exclude stocks based on the responsible criteria of leading asset owners
Europe Single and Multi-Factor Market Neutral Indices Derivatives
Take advantage of trade futures on strategies targeting well-researched equity risk premia – Value, Carry, Momentum, Size, Low Risk and Quality.
Factor Investing: Q&A on Flows, Outlook
Money going into vehicles tracking indices weighted in other way than market capitalization is testament to the popularity of factor strategies. Through risk factors, investors search for drivers of returns premia in the market that have shown to generate outperformance in the long term.