The PDF version of the July issue of ETFInvestor is now available for download.

The iPad version will be available in approximately 3 business days.

The case for multifactor funds is essentially the case for diversification, which Nobel Memorial Prize winning economist Harry Markowitz has described as the only “free lunch” in investing. Investors shouldn’t put all their “eggs” in one factor. But just because the argument for factor diversification is simple doesn’t mean that selecting and sticking with a multifactor strategy is easy. In fact, in light of the proliferation of multifactor funds, choosing from the now-expansive menu is becoming more difficult by the day. In this issue, we take a closer look at the case for spreading factor bets and provide a framework to help investors navigate the multitude of multifactor funds.

Also in this issue:

• I look at the changes to GICS that birthed the latest addition to the Select Sector SPDR suite, Communication Services Select Sector SPDR XLC.
• I discuss what I believe are the most over- and undersold attributes of the ETF wrapper.
• Adam McCullough profiles iShares Edge MSCI Multifactor USA ETF LRGF, which carries a Morningstar Analyst Rating of Bronze.
• Alex Bryan shares his analysis of Bronze-rated Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF GSLC.
• In this month's Sector Snapshot, I drill down to see what sectors and stocks moved the market in June.

You can download this month's issue here:

http://etf.morningstar.com/Newsletter.aspx?download=currentIssue

Best,

Ben Johnson, CFA