Crafting a portfolio of exchange-traded funds that will weather market twists and turns can be challenging. But now there’s an ETF for that: the multifactor fund. Such ETFs offer a way to simultaneously invest in many stocks with different characteristics—also known as factors—such as low volatility, momentum or value that play a role in return. They help investors reduce the risk of getting left behind when certain stocks abruptly fall out of favor and money flows elsewhere in the market.

Source: Wall Street Journal December 10, 2018 03:13 UTC