JMF Capstone Wealth ManagementThe Long And Short Of The Low-Volatility Anomaly – JMF Capstone Wealth Management https://www.jmfcapstone.com An Alabama registered investment advisor Fri, 21 Nov 2025 19:30:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 The Long And Short Of The Low-Volatility Anomaly https://www.jmfcapstone.com/2014/07/22/the-long-and-short-of-the-low-volatility-anomaly/ https://www.jmfcapstone.com/2014/07/22/the-long-and-short-of-the-low-volatility-anomaly/#respond Tue, 22 Jul 2014 14:48:26 +0000 http://evolvemypractice.com/?p=1136 As far back as the early 1970s, research has shown that the lowest volatility stocks have provided better returns than the highest volatility stocks. These findings run counter to economic theory, resulting in the low-volatility anomaly. The academic research, combined with the 2008 bear market, has led to low-volatility strategies becoming a darling of investors....

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]]> As far back as the early 1970s, research has shown that the lowest volatility stocks have provided better returns than the highest volatility stocks. These findings run counter to economic theory, resulting in the low-volatility anomaly. The academic research, combined with the 2008 bear market, has led to low-volatility strategies becoming a darling of investors. For example, as of July 3, 2014, five low-volatility ETFs had reached at least $1 billion in assets under management:

  • PowerShares S&P 500 Low Volatility Portfolio (SPLV): $4.1 billion
  • iShares MSCI USA Minimum Volatility Index Fund (USMV): $2.6 billion
  • iShares MSCI Emerging Markets Minimum Volatility Index Fund (EEMV): $2.0 billion
  • iShares MSCI All Country World Minimum Volatility Index Fund (ACWV): $1.2 billion
  • iShares MSCI EAFE Minimum Volatility Index Fund (EFAV): $1.2 billion

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