The Long Term Investor

Index vs Factor Investing (EP.234)


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Index funds are often pitched as the no-brainer choice for long-term investors—but are they the only rules worth following? In this episode, I use one of my favorite analogies to explain how indexing and factor investing evolved, how they differ, and how to decide which mix fits your goals and behavior.

Listen now and learn:

► Why indexing became the "radar gun" of investing—and what it actually guarantees you

► The key trade-offs baked into market-cap-weighted index funds that most investors never think about

► What "factors" like value, size, profitability, and momentum really are (in plain English)

► A simple framework to know whether you should stick with plain indexing or consider adding factor tilts

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Disclosure: This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this "post" (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Plancorp LLC employees providing such comments, and should not be regarded the views of Plancorp LLC. or its respective affiliates or as a description of advisory services provided by Plancorp LLC or performance returns of any Plancorp LLC client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

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The Long Term InvestorBy Peter Lazaroff

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