The low volatility anomaly

Market insights

Thursday 01 August 2013

How taking less risk can lead to the same or better returns than the benchmark

Over the last 10 years, there has been a mounting body of evidence suggesting there is a tendency for low beta (or low volatility) stocks to outperform high volatility stocks. Some investment managers have sought to exploit this opportunity and defy conventional 'higher risk higher return' investment mantra. In this MIM Insight we explain what the low volatility anomaly is, why it exists and how it could add value to investor portfolios.

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