Minimum Volatility.

Seek growth, manage risk.

November, 2015  |   Download PDF

Key Takeaways

  • Global equity markets are expected to remain volatile following a tumultuous few months marked by growing concerns about the strength of the global economy.
  • Minimum volatility strategies can potentially be of particular benefit when volatility is rising but also when volatility abates. By seeking to limit the downside during the deepest market troughs, minimum volatility strategies may be positioned to capitalize better on a rebound.

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Minimize Volatility, Maximize Your Portfolio

Exchange traded funds that seek to minimize volatility may be a valuable addition to a well-rounded international portfolio of stocks and bonds.

As the following example shows, by allocating a portion of your holdings to a few minimum volatility funds, overall portfolio returns may be less turbulent, but also potentially more lucrative.

The iShares Minimum Volatility Suite—Potential For Overall Reduction of Portfolio Risk

chart: The iShares Minimum Volatility Suite — Potential For Overall Reduction of Portfolio Risk

Portfolio Inception Date 12/01/09.

Sources: BlackRock, Morningstar and MPI. December 1, 2009 - September 30, 2015. Canadian Dollars. The performance shown above for the Sample Portfolios is calculated with the benefit of hindsight, and not indicative of any actual fund or portfolio. Portfolio performance was calculated from the weighted actual index returns for the indices for the period 12/2009 to 09/2015. The weight for each index return is shown in the pie charts above for the two sample portfolios.

Index returns are for illustrative purposes only and do not represent actual fund or portfolio performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

View the full Minimum Volatility Suite

iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

MSCI® and EAFE® are trademarks of MSCI, Inc. ("MSCI"). XMI, XMM and XMW are permitted to use the MSCI mark and, as applicable, the EAFE mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the indices. BlackRock Institutional Trust Company, N.A. has sublicensed the use of these trademarks to BlackRock Asset Management Canada Limited. XMI, XMM and XMW are not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in XMI, XMM and XMW.

© 2016 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES, FACTORSELECT and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.