Human Capital Factor®
The Human Capital Factor® applies workplace behavioral science, financial acumen and deep data science to capture the powerful connection between human capital and stock performance.
By understanding company culture and intrinsic employee motivation, we are able to transform these insights into high-returning investment strategies for our partners.
BMO HUMAN CAPITAL FACTOR
US EQUITY STRATEGY
The BMO Human Capital Factor US Equity Strategy is comprised of a proprietary filtering of the companies in the S&P 500 index. The strategy is designed to select higher-than-benchmark securities from this universe with respect to their Human Capital Factor® (HCF) performance, a quantitative measure of the relationship between employers and their employees, while minimizing tracking error relative to its benchmark.
The BMO HCF US Equity Strategy is based on Irrational Capital’s research being applied to an extensive universe of both public and private data sources containing corporate culture assessments.
The ‘buy’ list, consisting of approximately 125-140 companies, is sector-weighted to the S&P 500 index, market capitalization-weighted within sectors, recast annually, and rebalanced quarterly. The BMO Human Capital Factor US Equity ETF (ZHC) tracks this strategy.
Structure
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ETF Issuer/Fund Manager: BMO Global Asset Management
Documentation*
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