QLEIX

AICHEngineer

This may be a chat to have with your FA. Complexity and tracking error may just not be right for you, even if on a pure math basis you would end up richer with AQR. In the world of quantitative investing, AQR is very legit. Some of their funds are the absolute best means of accessing factor tilts, trend, multi-asset diversification (QLEIX, QLENX, QHFNX, QSPIX, etc), and theyve been doing financial science stuff to make their strategies much more tax aware. They have way more tools to offer you than just tax-loss-harvesting long-only funds. They also have long/short factor tilt funds, trend algos, US beta + l/s, but yeah their fees are very high. You have to really believe in the factor premia and trend to buy the style products. But, results do speak for themselves like QLEIX (total world stock market long/short value/profitability/momentum factor tilt fund) vs VT (MCW total world). QLEIX has crushed VT on returns and with way lower volatility and drawdowns.

Mysterious-Entry-357

In the past, I would say buy in what you understand and believe in. Dips hurt less if you at least know that you invested responsibly and ethically. Now, I'm not really sure what that even looks like. Massive fluctuations triggered by headlines and political statements is just not how I want to invest. Now BALT, USMV, SGOV and QLEIX exclusively. Long-term retirement investment is still monthly contributions in broad etfs. I'm not claiming that this is the way for anyone else, it's just where I have landed.

LoveNo5176

Leaning your portfolio with value or growth won't change much from a risk/reward standpoint. You'll just flip back and forth at exactly the wrong times looking at historical performance when you miss good years in one or the other. They fluctuate in terms of returns/risk over a long period. We just happen to be in an extended period of tech outperformance. International has also grown more and more correlated as economies have globalized so it can work, but most developed economies in Europe aren't looking so hot and haven't for awhile. If you want equity-like returns with lower correlation you should check on long-short funds like QLEIX. Not for everyone but you can get access through some brokers without an advisor. Otherwise, consider adding momentum and quality factors either in one combined fund like Wisdom Tree Multifactor (USMF) or separately.

AdhessiveBaker

Passive investors already have allocations to real estate and commodity producers through their index funds. Many also have exposure to real estate through their own dwelling. The problem with these active management strategies is that retail investors can’t replicate them. Not can they participate in them. The top managers funds are both closed and inaccessible due to high minimum investments. Sometimes we just have to be prepared for lackluster returns. Sure, an investor in the AQR long-short equity fund (QLEIX) is looking like a genius this year with their 22% returns, but by almost every other measure besides YTD, SPY comes out ahead. In other words, you would have had to sacrifice tremendous gains in order have 2022 be an up year. Also to note that a hedge fund or endowment can have a potentially unlimited time horizon, something we don’t benefit from. Yale can invest in an illiquid asset like timberland or something with a 10-20 year time horizon, we don’t have that luxury. We can try to mimic the exposure by buying WOOD, but our experience will still be completely different than Yale’s experience