Published on 30 Jun 2022 on ETF Trends via Yahoo Finance
This article was originally published on ETFTrends.com.
Investors favor low-volatility funds when they want to reduce their downside risk but still participate in some of the market’s growth.
Traditional low-volatility strategies may introduce unintended sector concentration and interest rate risk, among other challenges, but this may be mitigated by applying the quality factor to a low-volatility strategy, thus allowing an investor to capture more market upside potential while protecting against downside risks.