This article analyzes the impact of using one or two satellite investments on portfolio returns, suggesting a single option is preferable.
This article focuses narrowly on a very concrete question that investors and advisors may consider frequently. Given a goal of enhancing a portfolio’s long-term return by tilting it toward the size and value factors, and given an existing core exposure to the broad stock market, is it better to add one (small/value) satellite or two (one small-cap and one value) satellites? The results here suggest that, all things considered, adding one small/value satellite is the better option.
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Javier Estrada (2026) studied this question.
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