Implementation considerations for defensive strategies: A look at three approaches

February 6, 2019
Redrawing the equity map with global small caps

Recent market turbulence has refocused attention on the potential long-term benefits of defensive investment strategies. In this new paper, we take an in-depth look at three such approaches: Low Volatility Factor (LVF), Minimum Variance (Min Var) and Equal Risk Contribution (ERC). While similar in their use of risk measures to reduce the risk of the portfolio, these strategies have very distinct objectives, portfolio construction methodologies, exposures and investment outcomes. Read this research to learn more about these important differences and what investors need to know to choose the defensive approach that best suits their investment needs.