Finding opportunities through the low-volatility anomaly from BMO Capital Markets in the USA looks at the long term historical outperformance of low volatility stocks and asks whether it is likely to continue. BMO says a combination of behavioural factors and institutional investor incentives suggest it will.
Meanwhile, author and value analyst James Montier says derisively in Smart Beta = Dumb Beta + Smart Marketing that low vol investing is just snake oil, a marketing term for repackaged value and small cap factor tilts.
Sticks and stones will break my bones, but words etc - I quite like my Canadian version of snake oil so far ... BMO's low vol ZLB ETF (disclosure - I own some ZLB) vs standard cap-weight XIU (don't own any)
Saturday, 21 December 2013
Posted by CanadianInvestor at 01:37
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