Low Volatility Portfolio

Home » Investment Management » Low Volatility Portfolio

The Low Volatility Portfolio invests across domestic and global markets and sectors, emphasizing a diverse range of stock and tax-exempt bond investments in pursuit of steady returns and low volatility.

This strategy is designed to help weather the ups and downs of the stock and tax-exempt bond market. By offering access to these strategies while seeking to minimize the markets peaks and valleys, Focus Planning Group’s Low Volatility Portfolio can help you stay invested in for the long term.

Why Low Volatility?

Key Benefits

Our Low Volatility Portfolio may help you stay invested in stocks and tax-exempt bonds while managing additional risks that can be associated with more volatile markets
May provide downside protection while maintaining exposure to potential upside participations
iShares Minimum Volatility ETFs can offer less risk by tracking indices that seek an optimal mix of less volatile stocks.

When building the index, the index provider MSCI employs a three step-process:

  1. Evaluating the volatility of each individual stock
  2. Analyzing the correlations between stocks
  3. Applying a number of constraints to ensure the portfolio is sufficiently diversified and maintains the characteristics of the broad market

By looking at both the risk of each stock, and the risk of the portfolio as a whole, the index provider can target a reduced level of risk.

Information courtesy of iShares.  For more information please visit iShares

How the iShares Minimum Volatility ETFs Work

Seek to Manage Volatility

The potential for broad market exposure, with the potential for less risk

The Benefits of Bonds with Low Duration

The bond allocation is designed for interest rate sensitivity, in a rising interest rate environment

What is Duration?

Duration calculates how much a bonds price might move when interest rates change. The longer the duration, the higher the risk its price will be affected by a future change in interest rates.

Asset Allocation
Domestic Stocks 14%
International Stocks 6%
Tax-Exempt Bonds 78%
Cash 2%

Invest with Us

Start the conversation about your financial future and schedule your 30 minute complimentary consultation. You can reach us directly at 631-714-6044, click to schedule a meeting.