Low Vol Stocks Heading For A Crash - maybe some say
Low volatility investing has been in vogue since the dot-com bubble burst. However, the strategy has really come into its own since the financial crisis as investors, seeking safe yield in a low yield world have chased the valuations of low vol stocks higher.
Since January 2002, stocks with low price volatility, when evaluated using the popular MSCI Minimum Volatility index, have handsomely outperformed the market. The MSCI Europe Low Vol index has outperformed the MSCI Europe by 3% per annum while the MSCI US Low Vol index has outperformed the MSCI US index by 1% per annum.
