What Rising Rates Mean to Low-Vol Investors

“Confusing risk with volatility can be dangerous,” says a recent report by Greenline Partners, as it “can lead to seeing things that do not exist.” This according to an article published this past May in Chief Investment Officer. Greenline, the article states, found that low-vol strategies outperformed the index by nearly 1%-2% annually over the […]

The Irony of the Low-Volatility Binge

Investor appetite for low-volatility mutual and exchange-traded funds isn’t new. However, it seems to be reaching the point of gluttony. Bloomberg reports that this month, (for the first time), combined assets in the PowerShares S&P Low Volatility fund and the iShares Edge MSCI Minimum Volatility USA ETF reached $20 billion. But as investors continue to flee the rest of the equity markets (yanking […]

Popularity and Price Increase for “Low Vol” Funds

“Low volatility” funds have surged in popularity recently as investors have poured nearly $10 billion into them so far in 2016, which has significantly increased their price. At the end of 2015, one such “low vol” fund (i.e., specializing in stocks that fluctuate less than the broader market) had a P/E ratio just above the […]