Over time, certain asset classes tend to outperform others.

• Factor 1: In general, stocks have delivered higher returns than bonds.
• Factor 2: Across investing styles, value stocks have beaten growth stocks.
• Factor 3: Across market capitalizations, small caps have outpaced large caps.

In fact, research from Eugene Fama and Kenneth French, leading American financial economists, shows that a weighting toward these three “riskier” asset classes can actually help maximize long-term returns.