Low-Volatility: Different Approaches, Same Anomaly
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This article was provided by our partner Tom Lydon of etftrends.com.