Factor Investing is a strategy that chooses securities on attributes that are associated with higher returns. The most common factors are value, size, and momentum.The goal of factor investing is to find these premiums and earn above-average returns relative to the market as a whole.One advantage of factor investing is that it can help reduce risk by diversifying across different factors.Another advantage is that many investors believe there’s a “smart beta” premium in the market, meaning you can earn better returns without taking on additional risk.