@article {Chong72, author = {James Chong and William P. Jennings and G. Michael Phillips}, title = {Eta{\textregistered} Analysis of Portfolios: The Economy Matters }, volume = {15}, number = {2}, pages = {72--84}, year = {2012}, doi = {10.3905/jwm.2012.15.2.072}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The authors introduce a macroeconomic factor model, the Eta model, and its various applications. The underlying message regarding the Eta model, be it for replication, wealth maximization, or wealth preservation, is that {\textquotedblleft}the economy matters.{\textquotedblright} The core feature of the Eta model is its replication methodology, from which portfolios could be customized to fit the risk{\textendash}reward preferences of investors with respect to the economy. They then evaluate the portfolios against the Dimensional Fund Advisors Core Equity 1 Portfolio, which adopts the methodology promoted by the Fama{\textendash}French three-factor model.TOPICS: Factor-based models, portfolio construction, performance measurement}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/15/2/72}, eprint = {https://jwm.pm-research.com/content/15/2/72.full.pdf}, journal = {The Journal of Wealth Management} }