Investment factors are historical drivers of long term returns. When constructing portfolios we look at macroeconomic factors such as interest rates, inflation, and growth cycles, along with style factors such as value, size, and volatility. Our value tilts are made by investing in several thousand stocks and overweighting to companies with lower price to book, price to earnings and price to free cash flow ratios. We also favor companies smaller in size and less volatile than peers. This long term total market approach helps us to reduce frequent taxable trading while harnessing long-term return potential.