How Quant Investing is Outperforming Traditional Strategies

Quant investing is a type of investment strategy that uses computer-generated models to determine the optimal way to invest money. The goal of this approach is to produce higher returns on investment while limiting risk as much as possible. The best performing year in terms of quant returns was 2016 when they beat traditional investments by 2 percentage points over three years.

The Best Performance of the Year

The best performance of the year for a quant strategy was $1,500. That’s more than 10 times what you would have earned if you had invested in traditional index funds over the same time period (a total return of just 0.04%).

In fact, when looking at all of this year’s results–including those from traditional investing strategies–the average annualized return of a quant model outperformed those same traditional strategies by around 2%. The reason why? It’s all about how much money we can make with our algorithms:

  • They’re able to make decisions quickly and efficiently without having to check back with human managers;
  • They’re able to buy low-cost assets like ETFs instead of expensive ones like stocks;
  • And they have access to many more data points than humans do!

No Retirement Savings for a Generation

You can’t afford to put off saving for retirement. If you don’t save enough, your financial prospects will be bleak; and if you wait too long, it may be too late to start saving at all. The median American household has just $60,000 in retirement savings–and that’s just the beginning. According to one study from Vanguard, Americans need an average annual income of $25 million in order to satisfy their basic living expenses during retirement (including health care). If you’re planning on retiring at age 65 with half those assets saved so far, then chances are good that most financial advisers would tell you that this isn’t enough time invested in building up your savings–and they’d also point out that there’s no guarantee this scenario will play out exactly as planned anyway!

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Quant Investing Provides More Investment Choices

Quant investing allows you to invest in a wide range of asset classes. You can choose among stocks, bonds, commodities, and real estate–and that’s just the beginning!

Traditional investors are limited by the types of investments that are available through their brokers or financial advisors. In contrast, quant investors have access to a wide range of asset classes that make it easy for them to create diversified portfolios from which they can generate returns at any time during market cycles.

Low Costs, High Returns, and Low Risk

The key to higher returns is low cost. Low cost means that you have less money to invest, which means your returns are going to be smaller than if you had more cash on hand. And if you look at the average return of DFA’s portfolio over the last decade (see chart below), it’s clear that this is true:

  • The average annual return for all their funds was 7% from 2004-2014, compared with 4% from 2003-2013 for traditional asset managers like Vanguard and Fidelity.

Quant investing is more attractive due to its higher return on investment and lower risk.

Quant investing is more attractive due to its higher return on investment and lower risk.

Quant investors are able to achieve higher returns on their investments than traditional investors because they use advanced technology and algorithms to identify trends, predict future events, and generate trades based on those predictions. These strategies are called quantitative methods, which means that they’re based on math rather than intuition or emotion (like “gut feel”). Theoretically speaking, these algorithms can be programmed to make decisions about stocks without any human involvement at all!

This means that quant trading could be a smart way for you to get started with investing without having access to the same kind of resources as traditional funds do; however, it’s important not just to look at the numbers but also to understand why they matter before jumping into this type of trading strategy yourself–especially since there aren’t many companies offering services like this yet!

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Quant investing has proven to be a more reliable investment strategy. The best part is that you don’t need to be a financial genius or have access to special equipment to make it work for you. If you are looking for an investment strategy that can help you get rich quickly, then this might be perfect for your needs!

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