Factor Investing

Low-Volatility Factor

Definition

What is Low-Volatility Factor?

A strategy favouring securities with comparatively low historical or expected volatility.

Example in practice

The index selects the least volatile shares in each sector.

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An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.

The tendency for relatively cheap securities to perform differently from expensive securities over time.

The return pattern associated with smaller companies relative to larger companies.

A legal or ethical duty to act loyally and carefully in another person's best interest.

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