Defensive equity strategies represent a useful addition to an equity allocation, but evaluating them in a typical relative risk-return framework can be awkward. We offer an alternative: use a defensive equity benchmark.
In our latest paper, we’ll explore:
We think an active strategy benchmarked to a minimum volatility index preserves the benefits of defensive equity, while adding alpha you can measure and explain.
Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal and fluctuation of value. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. Risk controls, as referenced, do not promise any level of performance or guarantee against loss of principal.