The funds billed as ‘low volatility’ have mostly fulfilled their mandate but for investors, the features of the selected securities, rescaled to minimize volatility, matter foremost
Most popular are ETFs based multi-factor filters modeled by various indices and managed passively
The combination of distinct and sometimes overlapping factors – dividends, income, ‘quality’, value, momentum and rotation – makes it hard to evaluate the outcome, except on basis of annual performance and volatility
Asset allocations by region (US, developed markets ex-US, emerging markets) & by market cap, by high beta & by momentum are discussed separately
We do not receive any commission or other form of compensation from the providers included in our 'Funds' presentation