Top Factor-Based ETFs for Diversified Smart Beta Investing
Factor investing traces its academic roots to the 1964 Capital Asset Pricing Model and gained significant traction after Eugene Fama and Kenneth French identified value and small-cap premiums in the 1990s. The term “smart beta” was coined by Willis Towers Watson in 2006, and today more than 1,000 smart beta ETFs trade on global exchanges, giving retail investors systematic access to return drivers that were once limited to institutional portfolios.
Five core factors have shown resilience across time, markets, and asset classes:
- Value: Targets stocks that appear undervalued on metrics like P/E and P/B — iShares MSCI USA Value Factor ETF (VLUE)
- Quality: Selects profitable, low-leverage companies with consistent earnings — iShares MSCI USA Quality Factor ETF (QUAL)
- Momentum: Follows stocks trending upward over the past 6–12 months — iShares MSCI USA Momentum Factor ETF (MTUM)
- Size: Focuses on smaller companies aiming to capture the small-cap premium — Vanguard Small-Cap Value ETF (VBR), iShares Russell 2000 Value ETF (IWN)
- Minimum Volatility: Picks stocks with historically lower price fluctuations to reduce drawdowns — Invesco S&P 500 Low Volatility ETF (SPLV), iShares MSCI USA Min Vol Factor ETF (USMV)
These factors can be grouped by behavior: value and size tend to be offensive (performing well in strong markets), quality and low volatility are defensive (holding up during downturns), and momentum is a trending factor that typically leads during expansionary periods.
Multifactor ETFs combine two or more of these exposures in a single fund. Because individual factors have varying correlations with each other — momentum, for example, has low correlation with both low volatility and value — blending them can soften drawdowns. Notable multifactor funds include Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), iShares U.S. Equity Factor Rotation Active ETF (DYNF), and Vanguard U.S. Multifactor ETF (VFMF).
Most factor-based ETFs are passive, index-based funds. Index providers construct specialized indexes — selecting for “high quality” or “low volatility” stocks, for instance — and the ETF tracks that index, much like how a plain-vanilla fund such as SPY tracks the S&P 500. For broader ETF comparisons, see our complete list of ETFs or the largest ETFs by assets under management.
Regulated brokerThe table below lists top factor-based ETFs with live pricing, performance data, and fund details.
| Stock | Price | Change % |
|---|---|---|
 iShares MSCI USA Value Factor ETF VLUE | $203.97 | 2.03% |
Vanguard Value ETF VTV | $218.49 | 0.92% |
 iShares Russell 1000 Growth ETF IWF | $121.95 | 1.01% |
Vanguard Growth ETF VUG | $86.02 | 1.10% |
 iShares MSCI USA Momentum Factor ETF MTUM | $343.78 | 1.55% |
 iShares MSCI USA Min Vol Factor ETF USMV | $94.23 | 0.02% |
 iShares MSCI USA Size Factor ETF SIZE | $175.43 | 0.21% |
Vanguard Small Cap ETF VB | $297.43 | 0.31% |
 iShares MSCI USA Quality Factor ETF QUAL | $215.43 | 0.21% |
Invesco S&P 500® Quality ETF SPHQ | $89.49 | 0.38% |
SPDR S&P 600 Small Cap Value ETF SLYV | $106.24 | 0.04% |
iShares S&P 500 Growth ETF IVW | $136.92 | 0.75% |
Schwab U.S. Large-Cap Growth ETF SCHG | $33.54 | 1.06% |
 Invesco Dorsey Wright Developed Markets Momentum ETF PIZ | $58.44 | 1.63% |
SPDR S&P 1500 Momentum Tilt ETF MMTM | $312.92 | 0.09% |
Invesco S&P 500® Low Volatility ETF SPLV | $73.36 | 0.56% |
iShares Russell 2000 ETF IWM | $298.44 | 0.96% |
FlexShares Quality Dividend Index Fund QDF | $89.31 | 0.03% |
 iShares US Equity Factor ETF LRGF | $75.43 | 0.25% |
 JPMorgan Diversified Return Use Equity JPUS | $139.27 | 0.44% |
 TR Activebeta US Large Cap Equity ETF GSLC | $141.46 | 0.30% |
Vanguard High Dividend Yield Index ETF VYM | $158.49 | 0.18% |
 ISHARES TRUST ^DVY | $154.29 | 0.61% |
Invesco S&P 500® High Beta ETF SPHB | $157.13 | 1.48% |
 Direxion Daily Small Cap Bull 3X Shares TNA | $73.91 | 2.98% |
 iShares MSCI Emerging Markets Min Vol Factor ETF EEMV | $77.10 | 0.57% |
iShares Emerging Markets Equity Factor ETF EMGF | $76.28 | 0.55% |
 Xtr.(IE) - MSCI World Value R XDEV.DE | €73.42 | 1.25% |
ISHARES IV PLC ISHS EDGE MSCI W IWVL.L | $81.27 | 1.13% |
 SSGA SPDR ETFS EUROPE II PLC SS WVAL.L | $49.55 | 0.88% |
Xtr.(IE) - MSCI World MomentumR XDEM.DE | €91.67 | 1.35% |
ISHARES IV PLC ISHS EDGE MSCI W IWMO.L | $124.52 | 1.21% |
 SS SPDR MSCI USA SC.Val.W.UETFR ZPRV.DE | €79.23 | 0.29% |
SS SPDR MSCI Eur.SC Val.W.UETFR ZPRX.DE | €66.69 | 0.10% |
ISHARES VI PLC ISHRS EDGE MSCI MVOL.L | $72.74 | 0.10% |
Xtr.(IE)-MSCI World Minim.Vol.R XDEB.DE | €42.65 | 0.21% |
Xtr.(IE) - MSCI World Quality R XDEQ.DE | €77.24 | 0.23% |
ISHARES IV PLC ISHS EDGE MSCI W IWQU.L | $86.90 | 0.03% |
ISHARES IV PLC ISHS EDGE MSCI W IFSW.L | $15.79 | 0.13% |
JPMORGAN ETFS (IRELAND) ICAV JP JPGL.L | $51.06 | 0.34% |
 FRANKLIN TEMPLETON ICAV FRANKLI FLXE.L | £30.41 | 0.81% |
ISHARES IV PLC ISH MSCI EM VALU EMVL.L | $106.04 | 1.92% |