By: Tom Goodwin, PhD, Senior Director Research
World events since the summer have been unsettling at best. From the Paris terrorist attacks to the ongoing refugee crisis in Europe, it’s been tough to find a headline that gives us any reassurance that we’re entering a time of global stability. Economic factors such as China’s economic slowdown and uncertainty over whether the US Fed will raise interest rates have already led to some market volatility and many expect this trend to continue. Investors facing the prospect of still more market uncertainty to come may want to look at a couple of different kinds of indexes - “low volatility” and “minimum variance” - which are designed to help investors make their decisions on managing volatility in different ways. It’s worth clarifying the distinctions between these indexes because their aims and outcomes are distinctly different.