About Us
Factor Advisors, LLC (Factor) is a New York-based asset management firm dedicated to improving the way investors accomplish spread trading strategies. Factor's flagship offering, FactorShares, is the first family of spread exchange traded funds (ETFs). With one trade, each FactorShares ETF enables investors to track two market segments, one long and one short, in one convenient and cost-effective position. Factor has partnered with several premier organizations in order to develop and offer FactorShares including Interactive Brokers, Standard & Poor's and State Street Bank.
The Factor team consists of executives and professionals with a breadth of investment experience spanning industry, start-ups and academia. The underpinnings of Factor's products stem from the award-winning work of co-founder Dr. Richard Roll, Professor of Finance at UCLA's Anderson School of Management. Beginning in the 1970s, Dr. Roll challenged the conventional definition of single-factor investment risk (i.e. Capital Asset Pricing Model) and, along with economist Stephen Ross, has expanded our understanding of investment returns as dependent on multiple sources of unique factor returns (i.e. Arbitrage Pricing Theory). Beginning with the FactorShares family of ETFs, Factor is converting Dr. Roll's factor-based investment approach into convenient and readily accessible products.
An investment in the Funds involves risk, including the possible loss of principal. Leverage and/or short positions should be considered speculative and are not suitable for all investors. Commodities and futures trading are volatile and even a small movement in market price could cause large losses. The risks involved with each Fund are detailed in the prospectus and on the risk disclosure links on each Fund's web page.
Leveraged funds should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investments. Leveraged ETFs are not designed to track the underlying index over a longer period of time.