Factor Tilts (Fama-French 5)
Equity risk premium over risk-free. +100% = full beta, -100% = fully hedged.
Small minus big. Positive = tilt toward small caps for higher expected return + volatility.
High minus low book-to-market. Positive = tilt toward value stocks.
Robust minus weak operating profitability. Positive = tilt toward profitable firms.
Conservative minus aggressive investment. Positive = tilt toward low-investment firms.
Net Factor Impact on Stocks
Return adjustment+0.0%
Volatility adjustment+0.0%
Factor tilts modify the stock allocation's return and volatility assumptions. Based on long-run Fama-French factor premia estimates. 0% = no tilt (market portfolio). Applies proportionally to your stock allocation weight.