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Use factors to manage risk

What is minimum volatility?

Minimum volatility strategies aim to deliver market-like exposure with below-market risk. This style factor has historically provided downside protection by favoring stocks with more stable prices.

Why does this factor work?

Structural impediment
Structural impediment
Some low-risk investments may be off-limits to certain investors, making their prices attractive for others.
Behavioral bias
Behavioral bias
Irrational investors may chase flashy performance from riskier stocks, leaving low-risk stocks underpriced.

Views on minimum volatility

Minimum volatility strategies may appeal to investors seeking to manage risk while also participating in the market.

Investing in minimum
volatility ETFs

Volatility can drive investors to abandon their plans and time the markets, jeopardizing their long-term goals. iShares Edge Minimum Volatility ETFs are designed to offer less risk to help investors stick with their plans.

Build a minimum volatility portfolio
Use this interactive tool to see the potential impact of adding minimum volatility strategies to a portfolio.
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