Education . Factor Timing . 2 of 3 RupeeCase
The leaderboard is a rear-view mirror.
Five factors, ten illustrative years. Last year's leader repeated as this year's leader only 3 times in 9 hand-offs. The style that led one year has a habit of trailing the next.
Year Led Lagged
2018Low VolSize
2019MomentumSize
2020MomentumValue
2021ValueMomentum
2022ValueSize
2023MomentumLow Vol
2024MomentumLow Vol
2025ValueSize
Look at 2020 and 2021. Momentum led, then finished last. Value finished last, then led. Own all five and rebalance instead of guessing and the same decade paid 10.5 pct a year, illustrative, worst year minus 1.6 while single factors fell as far as minus 11. Slightly ahead of the average factor, at two thirds its volatility.