Since «smart beta» strategies exhibit both higher returns and elevated volatility compared to the index, naturally a question arises: What is the incremental return per unit
of risk of these strategies compared to that of the index?
Still, the reality is that this is one of the
big risks of strategies of going with high stock allocations at times of high valuations (when the risk of big price drops is greatest).
Hedge strategy outlooks are determined relative to other hedge strategies and do not represent an opinion regarding absolute expected future performance or
risk of any strategy or sub-strategy.
Risk varies depending upon the strategy followed, and it is important for an investor to understand fully
the risk of each strategy.
This webpage outlines
the risks of this strategy.
The risks of this strategy?
However, those of us who understand the regulatory process knew
the risks of this strategy.