Markets Are Quiet. Too Quiet.
Many Happy Returns
How to Buy a Minimum Volatility Fund
Low volatility does not mean no volatility. These things do crash. And a lot of this comes down to the construction of the fund, like you say. So if you aren't going to buy one of these funds, it's really important to understand how it's constructed and how constrained its allocation is. Sometimes you have one of these minimum vol funds, which can't stray too far from a parent index. Now that could get badly burnt if there's a sector rotation away from its preferred sectors. Whereas US MV does contain constraints, they can't tilt more than 5% in either direction away from the parent index.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
