CORESHARES LowVoltrax tracks the S&P South Africa Low Volatility Index, which measures the performance of the least volatile stocks on the JSE. The 40 least volatile stocks are included in the index. Simply put, volatility is a measure of the amount by which a financial instrument’s price changes over time.
Volatility is defined as the standard deviation of the security’s daily price returns over the prior year.
Benefits to the investor:
- This is a suitable fund for investors that want equity exposure with lower risk
- The fund provides potential downside protection in bear (or falling) markets
- Although low volatility stocks have lower risk, over time they tend to outperform the market. This is known as the low volatility anomaly