Investors typically allocate to low volatility strategies to reduce total volatility and receive downside protection in portfolios, with the added benefit of earning competitive returns over the long term. Our data shows that it is important for investors to look beyond short-term quarterly reporting periods to evaluate whether low volatility strategies perform as intended, as strong equity market backdrops have historically caused intermittent weakness in low volatility strategies — but only for short-term periods. In this paper, we review the performance of these indexes over the last 20 years.
Historical data reveals that low volatility strategies have delivered several benefits to portfolios over the last 20 years:
Lower realized volatility1
Downside protection during adverse market conditions
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You should seek professional advice and consider the Product Disclosure Statement (PDS) and target market determination, available at www.ssga.com, before deciding whether to acquire or continue to hold units in the Funds.
You can access our PDS online or by calling us. The offer made in our PDS is available to persons receiving the PDS within Australia and applications from outside Australia will not be accepted. Past performance is not a reliable indicator of future performance. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.
Investing involves risk including the risk of loss of principal. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information. Performance quoted represents past performance, which is not a reliable indicator of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.