Candès, Hastie, Hogan, Kahn, Luo, and Spector develop a novel framework to measure whether thematic baskets capture real, coherent risks that matter for investors. Their findings challenge conventional risk models and highlight both the dangers and opportunities of betting on investment “themes.” Thematic Investing: a Risk-Based Perspective was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.| Alpha Architect
Stocks rose for the sixth consecutive month in September, the longest positive run in four years, on investor expectations that falling US interest rates and sustained economic growth will help corporate earnings.| STOXX
STOXX Ltd. today announced its expanding collaboration with L&G, with L&G’s launch of three developed world factor-based index funds tracking customized iSTOXX indices.| STOXX