Systematic quarterly rebalancing may help revenue-weighted portfolios seek potentially high yields.
Weakening global risk appetite may favor the quality and low volatility factors.
With weakness abroad, U.S. focused strategies drove flows in May.
Revenue weighting can bring valuations in line while maintaining above-market growth characteristics.
Traditional Index Weighting Is Being Challenged
A divergence in typically defensive factors may stymie investors seeking a refuge from volatility.
U.S.-listed ETFs had outflows again in March, but still posted positive inflows for Q1.
Income-generating investments have become expensive, but there is a value-conscious way to pursue yield.
Currency moves reflect global risk appetite and impact equity market factor performance.