Yes. I have seen that video. In Midsmall 400 universe CAGR returns are good as well as drawdown are also low. But that was just a pure index of midsmall400 not quality …Pls check that video again. They are quoting the paper of Raju.
About your quality factor question, if you add quality factor, it will reduce return but it will also resuce drawdowns, so its upto you, whether you want to apply it. In my personal opinion, if its reducing drawdown, then I am ready for lower returns. Because sticking to strategy in thick and thin is more important than 2-3% less returns.
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