Tag Archives: SPLV
A Better Mousetrap: Smart Beta Offers Superior “Risk-On/Risk-Off” Relative-Strength Signals
Technicians frequently compare the performance of the S&P Consumer Discretionary sector with the Consumer Staples sector for guidance on the market’s “risk-on” or “risk-off” trend. When the more cyclical Consumer Discretionary sector, which contains such sub-industries as autos, homebuilding and retail, outperforms the more defensive Consumer Staples group, which includes food, beverage and tobacco firms,…
- Categories Equities, Factors, S&P 500 & DJIA
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- Equities, Factors, S&P 500 & DJIA
- Other Tags
How Much Popularity Can Low Volatility Stand?
The low volatility anomaly — i.e., the tendency for low-volatility or low-beta portfolios to outperform market averages — has been the subject of at least 40 years of academic research. Given its challenge to what “everyone knows” about risk and return, it’s a fertile field for both professors and practitioners, some of whom recently characterized…