Disclosure: The content Market Realist publishes should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of BlackRock.
The CAGR for equity for the last 20 years is 7.8%. Equities outperformed investment-grade corporate bonds. Equities are the best performing asset class.
It’s been said the amount of equity you should hold in your portfolio is inversely proportional to your age. The proportion of equity is 100 minus your age.
Minimum volatility indexes seek to minimize the effects of the occasional gutter ball, allowing investors to focus more on their long-term investment objectives – the pins at the end of the alley.
So if a min vol strategy tends to outperform the broader equity markets when volatility is on the rise, yet underperform when volatility abates, wouldn’t it just be a wash? Not so fast.
