Research Affiliates

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Just like the Fremen in *Dune*, investors must adapt to unseen risks. In the world of alternative risk premia strategies, these risks often lurk beneath the surface, tied to hidden exposures within headline asset classes. At Research Affiliates, our latest analysis emphasizes the need for careful portfolio construction to navigate these challenges. By learning to "read the wormsigns," investors can mitigate these risks and make more informed decisions. Click here to read the full research article by Jay (Jongeun) Jeon and Jim Masturzo, CFA: https://lnkd.in/e-v6M8wy #RiskPremia #InvestmentStrategy #Dune [Disclosures: http://bit.ly/3hT1PuD] 

🌍📈 Watch Out for Overvalued EM Markets: Navigating Taiwan & India’s Surge with Smarter Strategies The AI boom isn't just reshaping U.S. markets—it’s making waves globally! Taiwan and India are leading the charge with extraordinary growth, outperforming other emerging markets. However, with valuations stretched to extreme levels, investors need to be cautious. At Research Affiliates, we believe mean reversion could create headwinds for these markets. Passive EM portfolios carry significant exposure to Taiwan and India, making it crucial to take a strategic approach. Our Asset Allocation Interactive (AAI) tool allows you to tilt portfolios away from overvalued markets and build strategies that reduce risk while targeting higher returns. With custom EM portfolios, you may be able to turn valuation challenges into tailwinds, boosting expected returns by up to 1.8% per annum. 🔍 Discover how you can build better portfolios with our AAI tool today! 👉 Explore Our AAI Tool: https://lnkd.in/fkkaB-V #EmergingMarkets #InvestmentStrategy #PortfolioManagement #India #Taiwan #Valuations #ResearchAffiliates #AssetAllocation #MeanReversion #InvestSmart #AIInvesting #EMInvesting Disclosures: http://bit.ly/3hT1PuD 

🚨 Election Volatility Insight 🚨 To measure daily market volatility, we analyze the cross-sectional standard deviation of returns from 100 portfolios, sorted by market cap and book-to-market ratios. Key Findings: 📉 Close elections (orange line) = heightened uncertainty and a spike in volatility (from about 10% pre-Election Day to 18% post-election). 📊 Landslide elections (green line) = smoother, more predictable market response. This demonstrates the classic **risk-off, risk-on** pattern. Close elections fuel larger price moves as markets absorb new information, while landslide outcomes are typically priced in well ahead. For more information, read the latest research authored by Rob D. Arnott and Forrest G. Henslee titled “Elections and the Stock Market: Polarization Trumps Politics”: https://lnkd.in/eiRaeX_h #MarketTrends #Elections #Volatility #InvestmentStrategies #RiskManagement Disclosures: http://bit.ly/3hT1PuD

Now ON-DEMAND! Our recent webinar with Rob D. Arnott and Brent Leadbetter: Avoid the Index Rebalancing Crowd! Exploring the Effect of Deletions on Index Performance. During this session, they explored how established index providers add stocks to their index when they have become large and expensive, while dumping stocks that have experienced steep declines in valuation. Research shows that historically, these index deletions lag the market by more than half in the year leading up to their removal from an index, but they historically outperform the market for at least five years after the breakup. This webinar will examine the deletion effect in popular indices and explore ways to mitigate this effect through thoughtful portfolio construction. Key Objectives: • Examine the research behind passive index construction and its effect on investment returns. • Explore how to mitigate the “deletion effect” in your own portfolio through the addition of a completion portfolio of index deletions. • Gain insights into the latest trends and approaches in passive index investing from industry experts. To access the on-demand webinar, click here: https://lnkd.in/gv6QgGUF #Investing #IndexFunds #PassiveInvesting #CECredit #Webinar #PortfolioManagement #Finance Disclosures: http://bit.ly/3hT1PuD

“As it turns out, getting dumped by an index can have an impressive upside, just as a romantic breakup can sow seeds for personal growth.”    Our founder and chairman, Rob Arnott, appeared in an ETF Stream article by Jamie Gordon to discuss the strategy behind NIXT.    “Dumped companies and their shareholders fare surprisingly well on average, better even than the stocks that replaced them.”    Read the full feature here: https://lnkd.in/eY68d_DJ   Learn more about the NIXT Index here: https://lnkd.in/eS2zZG6k     #RAInsights #NIXT    [Disclosures: http://bit.ly/3hT1PuD]  

📈 Stock Market Behavior Pre- and Post-Election: What the Data Tells Us. Rob D. Arnott offers a detailed analysis of market behavior before and after U.S. presidential elections.   #ElectionInsights #MarketTrends #InvestmentStrategy #FinanceResearch #GrowthVsValue   Disclosures: http://bit.ly/3hT1PuD   

“If you compare additions to deletions, the additions trade at about four times the valuation multiples of the deletions,” Rob D. Arnott explains on The Meb Faber Show, revealing the power of contrarian investing.   Learn how the NIXT Index taps into these undervalued stocks with potential for long-term outperformance.   🎧 Hear more insights from Rob in the full episode: https://lnkd.in/eGa9r7_D   The Idea Farm #RAInsights #ValueInvesting #FactorInvesting #NIXT #SmartBeta [Disclosures: http://bit.ly/3hT1PuD]

LAST CHANCE: Register for our next Webinar and earn CE Credit! Join us for an insightful webinar titled "Avoid the Index Rebalancing Crowd! Exploring the Effect of Deletions on Index Performance," hosted by Rob D. Arnott and Brent Leadbetter. 📅 Date: Thursday, October 24 ⏰ Time: 9:00 a.m. PT / 12:00 p.m. ET / 5:00 p.m. BT ⌛ Duration: 45 minutes During this session, they explored how established index providers add stocks to their index when they have become large and expensive, while dumping stocks that have experienced steep declines in valuation. Research shows that historically, these index deletions lag the market by more than half in the year leading up to their removal from an index, but they historically outperform the market for at least five years after the breakup. This webinar will examine the deletion effect in popular indices and explore ways to mitigate this effect through thoughtful portfolio construction. Key Objectives: • Examine the research behind passive index construction and its effect on investment returns. • Explore how to mitigate the “deletion effect” in your own portfolio through the addition of a completion portfolio of index deletions. • Gain insights into the latest trends and approaches in passive index investing from industry experts. 🎓 Bonus: This webinar qualifies for 0.5 CE Credit! 👉 Register now to secure your spot: https://lnkd.in/ekPX2AXN #Investing #IndexFunds #PassiveInvesting #CECredit #Webinar #PortfolioManagement #Finance Disclosures: http://bit.ly/3hT1PuD 

Register now to secure your spot at our upcoming 💻WEBINAR💻! Join us for Avoid the Index Rebalancing Crowd! Exploring the Effect of Deletions on Index Performance," hosted by Rob D. Arnott and Brent Leadbetter. 📅 Date: Thursday, October 24 ⏰ Time: 9:00 a.m. PT / 12:00 p.m. ET / 5:00 p.m. BT ⌛Duration: 45 minutes During this session, they explored how established index providers add stocks to their index when they have become large and expensive, while dumping stocks that have experienced steep declines in valuation. Research shows that historically, these index deletions lag the market by more than half in the year leading up to their removal from an index, but they historically outperform the market for at least five years after the breakup. This webinar will examine the deletion effect in popular indices and explore ways to mitigate this effect through thoughtful portfolio construction. Key Objectives: • Examine the research behind passive index construction and its effect on investment returns. • Explore how to mitigate the “deletion effect” in your own portfolio through the addition of a completion portfolio of index deletions. • Gain insights into the latest trends and approaches in passive index investing from industry experts. 🎓 Bonus: This webinar qualifies for 0.5 CE Credit! 👉 Register now to secure your spot: https://lnkd.in/ekPX2AXN   #Investing #IndexFunds #PassiveInvesting #CECredit #Webinar #PortfolioManagement #Finance Disclosures: http://bit.ly/3hT1PuD