We’re dealing with only four months of data, of course, and past performance is never a guarantee of future results. And it’s fair to say that low vol strategies have historically lagged in a strong market advance. But for investors who want equity exposure, would prefer a smoother ride, and are willing to underperform in a strong market — low volatility strategies may offer a comfortable port in the storm.
This article was written by Craig Lazzara, global head of index investment strategy, S&P Dow Jones Indices.
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