Low volatility or "low vol" investing means buying shares (or bonds) that tend to go up or down in price by less than the overall market (in other words, they're less volatile).
In theory, low-volatility assets should deliver lower returns than highly volatile ones, because investors are supposed to demand extra rewards for taking extra risks. Yet in fact, studies show that low-vol stocks beat their higher-volatility peers over time. As a result, low vol has been marketed as a "factor" alongside value, small-cap and momentum investing that can help investors to beat markets over the long run.
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Buying infrastructure funds - 'cheap is not always cheerful'Opinion Well-balanced infrastructure funds offer better prospects than high-yielding renewables funds, says Max King
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The new products and growth sectors driving America’s long-term winnersOpinion Felix Wintle, manager of the VT Tyndall North American Fund, highlights three favourite US stocks where he'd put his money
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Index providerGlossary Stockmarket indices such as the FTSE 100 play a huge role in investment. But where do they come from and who maintains them?
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Currency risk
Glossary This is the type of risk that comes from the change in price of one currency against another...
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Index fund
Glossary Index funds (also known as passive funds or "trackers") aim to track the performance of a particular index, such as the FTSE 100 or S&P 500.
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Indices
Glossary There are indices for every sort of market, but retail investors are probably most familiar with those related to stock markets.
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Q ratio
Glossary The Q ratio, or Tobin's Q, can be a reliable measure of stockmarket value.
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S&P 500 indexGlossary The S&P 500 index is one of the most widely tracked stock market indices in the world. Here’s a rundown of the index and why it’s so important
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Vix (volatility index)Glossary The Chicago Board Options Exchange (CBOE) Volatility index (Vix for short) reflects how volatile traders expect the market to be over the coming year.
