---
title: Factor Timing with Transaction Costs
url: https://www.ml-quant.com/papers/ssrn/7634558/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7634558
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7634558
featured: 2026-10-23
citations: unknown
topic: Portfolio & Allocation
---


# Factor Timing with Transaction Costs

A strategy dynamically allocating across 50 smart-beta factors based on past returns and covariances significantly outperforms static allocation even with transaction costs included.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7634558
- Identifier: SSRN 7634558
- Released: 2026-10-21
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation
- Authors: Vaibhav Lalwani, Ashok Gunturu

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