An exchange traded fund (ETF), particularly a smart beta exchange traded fund (smart beta ETF), that focuses on the proportion of risk involved in its holdings. Risk is manifested in many forms, mainly volatility levels. The aim is to control the amount of risk involved or to ensure it does not exceed a certain level. For that purpose, low-volatility ETFs assigns weights to securities based on their level of historical volatility or expected volatility over a specified period, such 6 or 12 months.
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41
Comments