Sentences with phrase «much volatility in their portfolios»

That's good news for retirees who may be nervous about accepting too much volatility in their portfolios.

Not exact matches

While the early - 2017 Federal Reserve minutes «expressed concern [about] the low level of implied volatility in equity markets,» it is worth noting that the SPX implied volatility levels at both 80 % and 90 % moneyness (corresponding with out - of - the - money puts used for portfolio protection) generally were much higher than the VIX levels.

By contrast, high - quality bonds such as those found in investment - grade corporate funds like the iShares 1 - 3 Year Credit Bond ETF (CSJ A-89) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD A-66), etc.), or in Treasury portfolios such as the iShares 1 - 3 Year Treasury Bond ETF (SHY A-97) or the iShares 10 - 20 Year Treasury Bond ETF (TLH B - 65), etc.) tend to buffer portfolio volatility to a much greater degree.

If much of the investment into bond mutual funds that has occurred the last couple of years is for purposes of dampening the volatility of a portfolio — and with the 10 - Year Treasury yield at 1.8 percent it's difficult to argue for a different motivation - then it's important to think through the thesis that bonds will defend a balanced portfolio in an equity bear market in the same way they have, especially to the extent they have in the last two bear markets.

But, many analysts think you should use a mixture of growth stocks with value stocks and other types in your portfolio, just to make sure you avoid the excess volatility (how much a stock's price goes up or down over a period of time) that comes with some growth stocks.

His concentration on value stocks in good companies with low volatility gives him the bones of a portfolio which will do well and won't jump around too much.

Now, it does mean you have a little more concentration and a little bit more volatility, but we do think it is much easier to produce alpha in a concentrated portfolio than in a 100 - stock portfolio.

In addition, the ETF reference portfolio had a much smaller volatility than that of the fund.

And the funds did exactly what I wanted them to do: They reduced portfolio volatility without sacrificing much in the way of returns.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

While the equity piece is the dominant volatility exposure in our portfolios we know that current bond markets leave much to be desired.

Yesterday, I read a Reuters article with the title, When Diversification Fails, which pretty much says the same thing: «since the credit crisis began in August 2007, these alternatives fell in lockstep with, or sometimes faster than, equities, driving volatility higher and amplifying losses of a risky portfolio.»

As long as some portion of an investor's portfolio is in foreign stocks, evidence suggests that those stocks should not be currency - hedged for three reasons: (1) Currency unhedged portfolios are not much more volatile than currency - hedged ones (and less volatile for US markets) and (2) Currency hedging appears to add about 1 % extra cost and (3) Some currency unhedged positions reduce overall portfolio volatility.

For instance, in this post Larry Swedroe points out that a balanced portfolio of S&P 500 and treasuries, has higher returns and lower volatility when 5 % of the portfolio was allocated to GSCI Commodity index even though the GSCI Index trailed stocks by as much as 8 %.

But regardless of how much stock volatility you're willing to take on in your portfolio, you should never have more than 75 % in stocks and less than 25 % in bonds.

Otar agrees, but stresses the Batemans should keep most of their portfolio in fixed - income investments, which should reduce volatility and make it much easier for them to stay disciplined.

And to quantify that volatility in a mutual fund ETF or portfolio of investments, investors typically turn to standard deviation, a measure that calculates how much an investment's annual return fluctuates around its long - term average annual return.

Given that we have gone through 2 nasty bear markets since 2000, the hedged portfolio shows slightly better returns since inception but with much lower volatility than the long only strategy and has not had a down year in the past decade: