Page 2 - Minimum Volatility News Today

We think the iShares Edge MSCI Australia Minimum Volatility ETF (ASX: MVOL) and Vanguard All-World ex US Shares Index ETF (ASX: VEU) ASX ETFs could be worthy of

Traditional multi-asset portfolios make allocations to cap-weighted equity indices to benefit from good long-term risk adjusted returns. But this also exposes the portfolio to the drawbacks of market volatility, including extreme events and tail risks, limiting the allocation to equities in a multi-asset portfolio. Traditional defensive strategies offered to investors have five common drawbacks. They deliver negative exposure to other rewarded factors since most competitors do not account for n...

Prepared by Scott Opsal Investment styles generally have an inherent tendency to outperform in either bullish or bearish market environments. One cohort attracts buyers when the equity market is running higher and optimism prevails, while other styles draw interest when the market is weak, worry abounds, and safety is the desire of the day. Such a behavioral bias is built into some factors by design, others accrue their directional bias as a secondary result of economic or cyclical forces. Th...