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REDDIT

Explanation of FF’s 5 Factors

B
May 14, 2025 · 20:01

Hello,

I would very much appreciate an explanation of Fama-French 5 factors in their 5 factor model.

Also, I’m a little bit confused because I’ve seen factor ETFs that don’t seem to match any of the 5 factors of FFs model - low volatility, quality, and momentum to name a few. As far as I can tell, FF factors are market risk, small cap, value, profitability, and investment.

I’m confused about how these ETFs fit into the model, if they do at all.

Thanks!