All investors are likely hunting for undervalued assets, but their approach to factor investing in portfolio asset allocation can vary significantly.

Value investing strategies focus on companies that are undervalued by the market, with the expectation the lower market valuation will lead to higher returns.

Wealth Investors director Chris Youssef says the limitations of trying to forecast market movements has led to a preference for  data-driven strategies to build robust portfolios.

“Factor ETFs play a significant role in our approach, offering a low-cost option to access specific sectors efficiently,” Youssef says.

“The ETF market has experienced significant growth in recent years, providing investors with a diverse range of investment opportunities.”

Youssef says the firm incorporates strategic tilts towards value companies, small-cap firms, and emerging markets within its portfolios, backed by comprehensive research and empirical data.

“This approach allows us to capture potential returns while mitigating risk factors,” Youssef says.

“Our investment process is systematic and evidence based. By prioritising factors that have demonstrated consistent performance over time, such as value, size, and geographic diversification, we construct portfolios designed to deliver long-term financial success.”

Youssef says although the firm will stay informed about the latest investment trends, they remain committed to evidence-based investing.