Factor fiction: does the asset class work for instos?

In the last three years, factor investing has been letting some of its adherents down.  Value, which has been the most popular factor-based strategy, has underperformed the market, leaving investors to ponder a change of approach. The strategies take ways to build stock or bond indexes using measurements aside from market capitalisation. The most common factors include size, momentum, low volatility, quality, value and yield. The purpose has been to identify and invest in sets o…