The 'low volatility anomaly

McCormick, Dominic
April 2013
Money Management;4/25/2013, Vol. 27 Issue 15, p18
Trade Publication
The article offers the author's insights on the anomaly of low volatity funds to investment returns. The author discusses several possible explanations of the anomaly including investors who chase volatile stocks, overconfidence and setting focus on benchmarking to traditional indexes. He mentions that low volatility and exchange-traded funds (ETFs) aim to provide market return with lower risk. He advises those who build investment portfolios to track the demise of the low volatility anomaly.


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