MSCI's Value Weighted index is best performing in 2016

Canada best single-country index

MSCI's Value Weighted index was the best-performing index throughout 2016, while Canada outperformed all other single-country indices.

Rounding up returns for the year, the MSCI reveals its Value Weighted index, which has been out of favour with investors over the past few years, increased 13.2% throughout 2016 and 3% in December alone, making it the best-performing factor index. However, MSCI also said Value Weighted remained the cheapest factor index, with a forward P/E of 13.2, while the overall market's (MSCI ACWI) forward P/E is 15.7. The Momentum index was the worst performing factor index, with a return of 4.8%, while the MSCI ACWI has returned 8.5%. Smart-beta investors 'dip their toes' back into value str...