Low-Volatility: Different Approaches, Same Anomaly

MarketsETF Trends

What is the “Low Volatility” Factor? A long-standing theory of financial markets is that higher risk demands higher reward. The evidence behind the low volatility anomaly stands in direct opposition to this theory. At its core, the anomaly (sometimes called the closely-related “bet-against-beta,” or “BAB,” factor) captures the empirical evidence that low risk investments have…Click to read more at ETFtrends.com.

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