Are low-volatility equity strategies a sweet spot for pension investors?
Vertex One Asset Management Inc. has launched a new fund for retail and institutional investors seeking absolute returns with low monthly volatility.
Last month, I wrote about the expanding equity index universe and the case for investing in frontier markets. Another equity index development that is gaining traction with investors is low or minimum volatility indexes. Some early adopters have expanded their own equity investment space and enhanced their equity portfolios’ risk-adjusted returns by utilizing low-volatility index strategies.
Demand could be driving prices too high.
Institutional investors now have two new low-volatility funds to choose from—RBC Global Asset Management Inc. has launched the RBC QUBE Low Volatility Canadian Equity Fund and the RBC QUBE Low Volatility U.S. Equity Fund.