[This ETF Industry Perspective is sponsored by Fidelity.]
Combining multiple factor exposures may offer diversification opportunities, thanks to the generally low correlations among factors. While equities often benefit from this approach, multifactor investing can add value in fixed income as well. In this white paper, Fidelity discusses the merits of factor-based investing across the asset classes.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Fidelity Investments Institutional Company, Inc.