Uncategorized

The Investor’s Guide to the Low Volatility Anomaly

close

Email a Friend

Kudos to Tadas (like how that sounds) at Abnormal Returns for his recent blogging and book about what’s know as the low volatility anomaly.

Simply, accepted theory is that higher volatility stocks (ie riskier) should perform better than lower volatility ones over time. You know, the old risk-return tradeoff.

The thing is that in practice, they don’t.

There’s been a growing body of research and interest into this phenomenon and I thought it would be worthwhile to make some order out of this.

The investor’s guide to the low volatility anomaly

Much of the interest into this curious fact has stemmed from academic research.

Academic Research on the low volatility anomaly

Reporting on the low risk volatility anomaly

Illustrations

dylan-grice on the low volatility anomaly

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discussion

Video

Morningstar: When less risk equals more reward

Tools

Low volatility investment products

  • Russell Developed ex US Low Volatility ETF ($XLVO)
  • iShares MSCI USA Minimum Volatility ETF ($USMV)
  • PowerShares S&P Low Volatility Portfolio ($SPLV)
  • Russell 1000 Low Volatility ($LVOL)
  • Russell 2000 Low Volatility ($SLVY)
  • iShares MSCI All Country World Minimum Volatility Index ($ACWV)
  • Summit Global Investments Low Volatility Equity Fund ($SILVX)

What did I miss?

0 comments on “The Investor’s Guide to the Low Volatility Anomaly”

Events, Uncategorized

New speakers announced for Tearsheet’s Resilience Conference

  • The Resilience Conference will celebrate the people, teams and companies successfully navigating through this crisis.
  • 3 new speakers have just been announced.
Tearsheet Editors | June 25, 2020
The Customer Effect, Uncategorized

Inside Yielders, the UK’s first regulatory compliant Islamic crowdfunding platform

  • Yielders, an equity-based crowdfunding platform for real estate, is the first Shariah-compliant financial technology company to get regulatory approval in the U.K.
  • The platform's user base is 35 percent non-Muslim, some of whom may be attracted to the ethical investing principles.
Suman Bhattacharyya | May 18, 2017
Sponsored, Uncategorized

FinTech is changing your life, and you don’t even know it

Brandeis University | May 01, 2017
Uncategorized

FinTech Week: By the numbers

  • Empire Startups' inaugural FinTech Week begins today in New York
  • In preparation for 25 forthcoming events over four days, here's a breakdown by the numbers.
Tanaya Macheel | April 24, 2017
Uncategorized

Hi 5! The top five fintech stories we’re following today

  • Retailers may be looking into the future as opposed to implementing for today.
  • Banks are working to get more people comfortable using mobile apps.
Zack Miller | February 06, 2017
More Articles