Have Minimum Volatility Strategies Fallen Out of Favor?

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  • 07 mins 37 secs
Despite a track record of outperformance during turbulent markets and producing a premium over long periods of time, investors are questioning minimum volatility strategies as the factor underperformed during a period of strong market rebounds in 2020. Did this long-term winner really underperform in 2020, or did it perform as expected?



In the realm of investing, a factor is any characteristic that can explain the risk and return performance of an asset. For over 40 years MSCI, starting with Barra, has researched factors to determine their effects on long term equity performance. MSCI has developed Factor Indexes and Factor Models in consultation with the world’s largest investors and has research backed by four decades of Factor data compiled by a 200+ global research team.

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