TY - JOUR T1 - Eta<sup>®</sup> Analysis of Portfolios:<br/> <em>The Economy Matters</em> JF - The Journal of Wealth Management SP - 72 LP - 84 DO - 10.3905/jwm.2012.15.2.072 VL - 15 IS - 2 AU - James Chong AU - William P. Jennings AU - G. Michael Phillips Y1 - 2012/07/31 UR - https://pm-research.com/content/15/2/72.abstract N2 - 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 “the economy matters.” The core feature of the Eta model is its replication methodology, from which portfolios could be customized to fit the risk–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–French three-factor model.TOPICS: Factor-based models, portfolio construction, performance measurement ER -