These features can be used for the investment via ETF

Frankfurt Whoever invests in stocks is confronted with many buzzwords. There is talk of “value”, of “momentum”, quality stocks and growth stocks. One way to bring systematic into these terms is the so-called factor investment.

Stocks are not sorted by industry or region, but by specific characteristics. These areas, in turn, can be mapped with exchange-traded funds (ETFs).

The US asset manager Blackrock has analyzed how these factors are currently to be assessed.

Blackrock expert Hamed Mustafa gives the “Momentum” factor (stocks with good share price dynamics) an attractive rating. He even calls “quality” (good balance sheets), “value” (low valuation) and “size” (small companies) “cheap”.

After all, he gives “minimum volatility” stocks a “fair” rating. These papers, sometimes also labeled as “low vols”, show particularly low price fluctuations on average.