Portfolio Summary: 

The LOWVOL portfolio aims to offer returns similar to the broad stock market but with less exposure to market swings and downturns. It achieves this through both sector diversification and stock selection.

The portfolio has a high degree of sector diversification relative to the broader market, by investing approximately equally across 11 major sectors of the economy. In contrast, the S&P 500 is over 30% invested in technology companies, leaving investors indexed to it heavily exposed to this volatile sector.

Within these sectors, the portfolio invests in stocks that have exhibited steady performance. Stocks chosen for this portfolio display some combination of low volatility, low beta (the tendency of stocks to move with the overall market) and low historical drawdowns.

Risks: This portfolio primarily comprises stocks and is susceptible to the inherent volatility and potential declines that characterize the stock market. The assessments of beta and volatility are based on historical data and we cannot guarantee that the chosen stocks will continue to exhibit these characteristics in the future.

Risk Score: 3