1. We wanted to provide a strategy to investors who may be under-allocated to volatility-controlled (risk-reducing) products, e.g., products that can hedge on the downside. Over the last 10 years of the equity bull market, some investors have over-allocated to higher risk assets and have put themselves at risk in the event of a market correction. MVIN has the potential to help investors address this overexposure to higher risk equity.
2. We found through our testing that many investors are seeking portfolio diversification. MVIN selects stocks based on their risk profile, rather than their return potential. Investment strategies that do this are rare and have the ability to exploit a phenomenon known as the “low volatility anomaly.” This anomaly has found that the lowest volatility stocks across all geographies can outperform stocks of higher risk over a full market cycle. By working to exploit the low volatility anomaly, MVIN provides investors with the potential to generate strong absolute and risk-adjusted returns.
3. Many US investors remain under-allocated to non-US stocks. The reasons for this can include home country bias, the belief that US stocks carry less risk, and the fact that US stocks have outperformed international stocks during the latest 10-year bull market.
As the bull market moves through what may be its late stages, MVIN could potentially help investors round out their portfolios and prepare for the unknown of the next investment cycle.
Natixis Distribution, L.P. is located at 888 Boylston Street, Suite 800, Boston, MA 02199 | 800-225-5478 | im.natixis.com
All investing involves risk, including the risk of loss. Diversification does not guarantee a profit or protect against a loss.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed above may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted.
Before investing, consider the fund's investment objectives, risk, charges, and expenses. Visit im.natixis.com for a prospectus or a summary prospectus containing this and other information. Read it carefully.
ALPS Distributors, Inc. is the distributor for the Natixis Seeyond International Minimum Volatility ETF. Natixis Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, L.P.
Seeyond is operated in the US through Natixis Asset Management U.S., LLC.