In an ongoing series on Seeking Alpha, I have described my "5 Ways to Beat the Market." Each of these strategies are factor tilts that have been shown to generate above market returns over long time intervals. The five factors - size, value, low volatility, dividend growth, and equal weighting - generate structural alpha, and are readily available to investors through low cost exchange-traded funds.
This article will describe the returns of these five strategies in the three days post-election, illustrating which of these factor tilts performed best in this historic week. By describing the performance drivers of these strategies in a regime shift for the market, we may get an insight into which strategies could outperform prospectively.
For the purposes of this analysis, this article uses five exchange-traded funds aimed at capturing the targeted return drivers:
- Size: iShares Core S&P Small-Cap ETF (NYSEARCA:IJR