Key facts
- Factor ETFs are experiencing their second-best year in a decade.
- Over half of factor ETFs are outperforming the S&P 500.
- All factor categories are seeing inflows, except for Low Vol.
- Low Vol ETFs may have been superseded by buffer ETFs.
Factor ETFs are having a strong year, marking their second-best performance in a decade. More than half of these ETFs are outperforming the S&P 500, a trend that is significantly better than active management. Inflows are being seen across all factor categories, with the exception of Low Volatility ETFs. The decline in Low Vol inflows is attributed to a potential shift towards buffer ETFs, which may be fulfilling a similar investment need.