Five Factor Investing with ETFs

Video Description

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Before attempting to implement these portfolios, please read this: Why It Would Be Ludicrous To Invest In These Model Portfolios https://boomerandecho.com/why-it-would-be-ludicrous-to-invest-in-these-model-portfolios/ Larger companies like Apple and Tesla make up a larger portion of the market compared to smaller companies, and these relative weights are reflected in a market capitalization weighted index fund. Letting the market dictate your portfolio weights has lots of advantages, but pushing the fundamental logic behind index investing one step further leads to the potential for significant improvements in portfolio construction. Referenced in this video: Five Factor Investing with ETFs: https://www.pwlcapital.com/resources/five-factor-investing-with-etfs/ The relationship between return and market value of common stock: https://www.sciencedirect.com/science/article/abs/pii/0304405X81900180 A Five-Factor Asset Pricing Model: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2287202 Timestamps: 0:00 Market Capitalization Weighted Index Fund Explained 1:00 The Efficient Market Hypothesis 3:25 Let’s Get Back to Basics 4:51 Capital Asset Pricing Model (CAPM) 6:40 Empirical Anomalies in the Market 8:56 Risk Premiums 12:30 What I do with my Own Money ------------------ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ Visit Rational Reminder: www.https://rationalreminder.ca/ Follow the Rational Reminder on: - Twitter: https://www.twitter.com/RationalRemind Visit PWL Capital: https://www.pwlcapital.com/teams/passmore-felix/ Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIn: https://www.linkedin.com/company/pwl-capital/ You can find the Rational Reminder podcast on Google Podcasts: https://www.google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz Apple Podcasts: https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2 Spotify Podcasts: https://open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA ------------------