Low Volatility Equity Investing

May 2016
Low volatility equity investing, sometimes considered among the “smart beta” strategies, has garnered a lot of attention and interest in the investment community since the financial crisis of 2008-2009. Low volatility investing is an investment approach with broad applications. Many investors have been searching for ways to reduce the overall volatility of their entire portfolio without sacrificing returns. Low volatility strategies are constructed in order to achieve those goals with the additional benefit of lower fees than traditional active management. Investment managers are able to attain an attractive risk/return profile due to the low volatility anomaly that exists in the stock market. This paper will provide insight into the low volatility anomaly, objectives, expectations, and client fit of low volatility strategies.


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