Objective

The Low Volatility folio was developed for investors seeking lower volatility in return for lower than expected market returns.

Strategy

The Low Volatility folio consists of large established companies that are significantly less volatile than the overall market. The folio has the goal of achieving about half the volatility of the S&P 500, while still retaining strategic exposure to equities to boost long-term expected return.

The folio can provide an easy hedge during an economic downturn or in periods of significant volatility, with the low cost of direct stock ownership.

Last Updated: September 26, 2016

Category: Strategy
Inception Date: February 26, 2008
Date Funded: August 31, 2009*

Folio S&P 500 Total Return
One-Month 0.05% -0.9%
Three-Month 1.68% 5.9%
Year-to-Date 6.71% 6.7%
One-Year 6.87% 13.55%
Three-Year (Annualized) 3.75% 10.39%
Five-Year (Annualized) 5.51% 15.48%
Since Inception 5.07% N/A
Volatility 6.12% 14.52%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1BGbunge limited2.05%
2CAGconagra inc2.05%
3CPBcampbell soup co2.05%
4Ddominion resources inc.2.05%
5DUKduke energy corp new com2.05%
6ECLecolab inc2.05%
7EPDenterprise prods partners l p2.05%
8EWJishares msci japan index fund3.07%
9EWLishares msci switzerland index fund2.05%
10EWMishares msci malaysia index fund2.05%
11IXJishares s&p global healthcare sector ind3.07%
12IYZishares dow jones us telecommunications3.07%
13Kkellogg co2.05%
14KMIkinder morgan inc del com2.05%
15PGRprogressive corp ohio2.05%
16PPLppl corp2.05%
17SHYishares barclays 1-3 year treasury bond20.35%
18TIPishares barclays tips bond fund40.68%
19XLIindustrial select sector spdr fund3.11%

Steps to Create This Folio

  1. We combined ETFs and individual stocks into a portfolio with a target risk level equal to half that of the S&P 500.
  2. We calculated historical risk and return projections on these securities.
  3. We then ran a quantitative analysis identifying the optimal allocations to each security while maintaining strategic exposure to equities.

Number of Securities

This folio is comprised of ETFs and the number of securities may vary.

Update Frequency

Quarterly.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.