A Bunch of 'Low Volatility' Stocks Just Failed to Live up to Their Label
Some U.S. stocks have only behaved like this 3 percent of the time over the past 25 years.
Will Volatility Rise in the Fourth Quarter?
This article is for subscribers only.
Calculating risk is a calculated risk.
Take low-volatility exchange-traded funds, which have gobbled up huge inflows over the past two years as investors seek exposure to U.S. stocks that won't exhibit price swings that are greater than the underlying market. However, low-volatility equity products failed that test earlier in the month when global assets sold off amid fears that central banks in advanced economies had run out of monetary ammunition.