Multi-Factor ETFs: What Are They and How Do They Work?

24 Jul 2023

Investing Concepts
Screenshot of the Magnifi investing app featuring a discussion with the AI investing assistant about mutual funds and index funds.

Multi-factor ETFs provide exposure to stocks with different characteristics such as value and momentum, in the same product. These ETFs apply a rules-based quantitative process to select stocks based on the chosen factors.

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This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. Investors should carefully consider the investment objectives and risks as well as charges and expenses of all innovation-related securities before investing. Read the prospectus carefully before investing. ETFs and mutual funds are actively managed and there is no guarantee that the manager’s investment decisions will produce the desired results. All investments involve risks, including possible loss of principal. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and fund expenses will reduce returns. You should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a summary prospectus and/or prospectus, which contains this and other information and read it before you invest or send money.