Known as the low-volatility anomaly, stocks with less price variability than stock market averages have historically delivered higher returns than the market averages. Understandably, these strategies have become an increasingly popular solution in the investor toolbox.
BMO Low-Volatility Equity Fund featured in Barron's
Lead portfolio manager Ernesto Ramos argues that despite popular belief, investors are not typically rewarded when they take on risk. He and his fellow fund managers seek out “steady-eddie companies” that they believe will outperform over the longer term – ultimately proving better returns to fund shareholders.
What is the low-volatility anomaly?
Portfolio managers Ernesto Ramos, Ph.D. and Jason Hans, CFA explain the cause of the so-called "low-volatility anomaly," why they feel it will continue to persist and how that can benefit investors.
Where does low volatility equity belong in an asset allocation?
Low volatility offers downside protection and upside participation, but where does it belong in a strategic allocation? We discuss this and how an allocation can help investors achieve various goals.
Why should advisors seek out an active manager?
There are a number of differentiating factors investors should consider when selecting a low volatility strategy to incorporate into their allocation framework. We make the case for an active approach.
Overall Morningstar Rating™ among 1,190 Large Value Funds as of 12/31/15 (Class I)
See how our portfolio managers exploit the low-volatility anomaly to provide a sophisticated, differentiated strategy for investors.