This research note was originally published by Investments & Pensions Europe (IPE). Here is the link. Investors showed a strong preference for multi-factor over single-factor products in 2017 and 2018, according to FTSE Russell’s annual industry survey, especially if new to factor investing. Some 87% of these allocated to multi-factor portfolios. This trend can partially be explained by the poor performance of the value factor over the past decade, which has historically been the favorite factor-investing strategy. Investors experienced that factor investing, also referred to as smart beta, does not necessarily imply better beta.