The Lemon Fool

Do you take notice of volatility indicators? What funds offer lower volatility? Do you invest in any lower volatility than market funds, if so which ones? Thanks

I don't look at volatility indicators it's apparent enough from observing the fluctuating values of my investments how volatile or not markets have been over the previous weeks. I do hold funds of varying volatility a short term bond fund a low volatility investment trust and an emerging market bond fund + cash
as well as FTSE all share.

Sheik, sounds like you have a diversified portfolio.

I have been ranking my investments by standard deviation and returns. Makes an interesting comparison.

There are funds with similar returns but lower volatility. And others with higher std deviation. Will impact where I invest in future. As I am one who is risk averse and prepared to accept slightly lower returns for less volatile investments.

You could consider the Vanguard Minimum Volatility ETF VMVL:

https://www.vanguardinvestor.co.uk/inve ... cumulating

fca2019 wrote:Sheik, sounds like you have a diversified portfolio.

I have been ranking my investments by standard deviation and returns. Makes an interesting comparison.

There are funds with similar returns but lower volatility. And others with higher std deviation. Will impact where I invest in future. As I am one who is risk averse and prepared to accept slightly lower returns for less volatile investments.

And the lower volatility funds with similar returns are they managed funds? I hold Capital Gearing Trust which is certainly low volatility but lowish return as well, but then it does what I need of it. When my ftse all share holding has risen by a meaningfull percentage I transfer some of the returns into the other holdings,simple enough strategy for even me to follow.
Chris Dillow writing in Investors Chronicle frequently states that lower volatility shares and momentum based strategies have beaten total market trackers.
I have no idea if he believes they will continue to do so going forward.?!
cheers
Dave

fca2019 wrote:I have been ranking my investments by standard deviation and returns. Makes an interesting comparison.

Volatility is volatile. I'll accept very high upside volatility any day