Over the long run, stock portfolios with lesser variance in monthly returns have experienced greater average returns than their ‘riskier’ counterparts.
Low-volatility investments have garnered significant interest from investors over the last several years. In this paper, we discuss the low-volatility anomaly, U.S. Value Yield’s proposition as a low-volatility portfolio, the differentiation of Value Yield in the low-volatility space, and client applications of the strategy.
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1Relative to the Russell 1000 Index.
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Past performance is no guarantee of future results. Investment returns will fluctuate and it is possible to lose money.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.