How minimum variance strategies have performed in US downturn

After years of low volatility, equity risk may be returning once again – with several larger movements this year emanating from the USA. For risk averse investors, low volatility equity strategies have offered the chance for investors to moderate the volatility.

But have these strategies worked? In a new performance report from Lyxor ETF François Millet, Head of ETF and Index Product Development, assesses the performance of the FTSE USA Minimum Variance over a period in which markets rose quite sharply, but risk reduction was maintained.