#low-volatility

When you hear the phrase “quality versus junk,” your mind may prepare to hear something insulting to or about somebody or something. Actually, though, that is an accepted label among academicians for a well-known “investment factor;” factor being defined as an objectively identifiable and testable set of characteristics shown to have a relationship to equity returns. It’s right there with size (labeled by academicians as large versus small), value (high book-to-market versos low book to market), etc. So I’m being completely serious when I say that over the past few months, junk and been hot and quality’s been cold. And that has been the story for the Portfolios123 Designed Low Volatility Portfolio, which is firmly in the Quality camp.

The Smart Alpha Low-Volatility Select S&P 500 Portfolio went through its quarterly refresh this week, at which time five positions were closed and six new ones were established.