In the smart beta world, companies with high profitability are often called ‘quality stocks’ as opposed to ‘junk stocks’ that are loss-making or have low profitability. Robert Novy-Marx was probably the first one to describe this profitability premium and bring it to the attention of a wider audience. While the quality factor is not necessarily universally accepted, I
Do you think that AI could fix this kind of inefficiencies?
There are several quality ETFs with varied approaches. Are there a select few you prefer?