Excess returns to strategies that don’t have a sound theoretical underpinning are likely to be random.
When evaluating smart-beta alternatives, understand the trade-offs in the transition from theory to practice.
The outlook for low volatility strategies remains promising.
Two approaches to evaluating market levels.
Low-vol strategies will likely result in greater diversification and more attractive final investor portfolios.
Investors need to ensure they shift their asset allocation as regimes change.