A framework for evaluating low-volatility funds

There are five important investment process questions to ask before buying a low-volatility fund.

Alex Bryan 7 August, 2018 | 5:00PM

Well-constructed low-volatility stock funds should offer better downside protection, a smoother ride and better risk-adjusted performance than the market over the long term. But not all low-volatility funds are created equal. Differences in how they are constructed can affect performance and their odds of success. It's important to have a strong framework to evaluate how these funds are built.

Portfolio construction framework

1) What's the selection universe?

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About Author

Alex Bryan

Alex Bryan  Alex Bryan, CFA, is director of passive strategies for North America at Morningstar. Before assuming his current role in 2016, he spent four years as an analyst covering equity strategies. He holds an MBA with high honors from the University of Chicago Booth School of Business.