The Asset Allocator: An Underappreciated Low-Vol, High-Return Strategy

Low-vol stocks’ 18-20% returns this year have trounced the S&P 500’s 6% returns, and have persistently outperformed the S&P 500 since 1990. In contrast to a momentum approach, low-vol stocks’ best relative returns occur during downturns and their worst relative returns during upswings. This podcast (5:09) argues that the type of person who buys a stock because it’s exciting is likely to sell it because it is disappointing, and hence funds alpha for those whose passions are not inflamed by market volatility, i.e., low-vol investors.Learn more about your ad choices. Visit megaphone.fm/adchoices