Value is the phenomenon where securities which appear "cheap" (i.e., value securities) tend to outperform securities which appear "expensive" (i.e., growth securities), on average. The existence of the value premium is a well-established empirical fact and is evident in 90+ years of US equity data, 40 other countries, more than a dozen other asset classes, and even dating back to the Victorian age in England.¹

Momentum is the phenomenon where securities which have performed well relative to peers (i.e., past winners) tend to outperform securities which have performed relatively poorly (i.e., past losers). The existence of the momentum premium is a well-established empirical fact and is evident in 200+ years of US equity data, 40 other countries, more than a dozen other asset classes, and even dating back to the Victorian age in England.²

Combining value and momentum factors produces a phenomenon where the significant negative correlations between the returns of the two strategies produces significant diversification benefits and therefore increased risk-adjusted returns than had the strategies been used individually. This phenomenon is a well-established empirical fact and is evident in 40+ years of data from several developed countries and major asset classes.³

Quality is the phenomenon where securities which appear to be safe, profitable, growing, and well managed (i.e., quality securities) tend to outperform securities which appear to be unsafe, unprofitable, stagnant and poorly managed (i.e., junk securities), on average. The existence of the quality premium is a well-established empirical fact and is evident in 60+ years of US equity data and 26 other countries.⁴