FidelityConnects

From value to momentum: Factors at play in 2021 - Vivian Hsu and Bobby Barnes

February 10, 2021

Director of ETFs and Liquid Alternatives, Vivian Hsu, and Head of Quantitative Index Solutions Bobby Barnes discuss the implications for factor investing as different sectors and industries benefit from the increased vaccine rollout throughout 2021 and policy changes from a new U.S. administration. Vivian is seeing a lot of rotation within the different equity markets when talking about factors. She says in 2021, value momentum and dividend factors are the top three factors at play. Bobby says factors are just characteristics of stocks. More and more investors are taking advantage of having access to these products.  He sees there are pockets that are frothy and rightfully so when looking at certain factors that are behaving exactly as expected. As the economy reopens in 2021, Bobby says momentum is not likely to work as we see more rotation. Vivian also comments on the role of social media saying it has fuelled many of the headlines we see around the world.  This makes it harder to stay the course and leave out emotion when investing. She says diversification in your portfolio is key. 

Recorded on February 5, 2021.