The Paradox of Low-Risk Stocks

Kent HargisChristopher W. Marx

IN THIS PAPER: Contrary to conventional wisdom, research shows that less volatile stocks tend to beat the market over the long term, in part by losing less in downturns. Our own research found that an active approach that combines low volatility and high fundamental quality produced even stronger performance. Because of its countercyclical behavior in market slumps, this strategy can be used as a source of uncorrelated alpha or as part of a plan’s overall risk management..

WHAT TO READ NEXT

Clients Only

The content you have selected is for clients only. If you are a client, please continue to log in. You will then be able to open and read this content.