Managing Volatility in Today’s Markets
Despite return misonceptions, minimum volatility strategies could help reduce risk during market downturns.
- Minimum volatility strategies seek to dampen the potentially negative effects of volatility on portfolios.
- These strategies are also capable of generating returns in more normalized market environments.
- Evidence suggests that market volatility could return to more normalized long-term averages – which means investors may want to consider what a min vol strategy could provide their portfolio.