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Use Low-Volatility Stock ETFs To Ease High Anxiety
I don't own SPLV, but since its inception on 5/5/2011, it has significantly outperformed the S&P500 (VFINX) as shown HERE. Using EZBacktest, since inception the respective standard deviations and sharpe ratios are 9.5/1.63 for SPLV vs. 16.9/0.68 for SPY.
Of all the LV ETFs out there, I continue to like EEMV.
Wow. I like the "LV Anamoly" insight Ted. Ditto for "Vive la vérité. Vive la volatilité." Good stuff bee (I think, since most of it is over my head). Does seem that Mr. Cole can certainly spin it. Here is link to similar version with, perhaps, some helpful narrative:
Thanks for the full text...I like his style of writing...a warm knife through the thick butter of the postmodern economy.
A few quotes from your link:
"We are now in the middle of a bull market in equities, commodities, bonds, and fear all at the same time. How can these conflicting visions of reality co-exist in the same multi-dimensional space? Welcome to the postmodern economy."
"It may be counterintuitive but you shouldn’t be afraid to climb the wall of worry when there is a mosh pit of hedged investors below you and below them a central bank financed mound of pillows stuffed with fiat currency."
Getting back to Ted's original comment... are these "Volatility Bonds" mentioned on page 10 & page 11, which use OTM (out of the money) puts/calls of the S&P 500...the same as what SPLV attempts to do?
Comments
Of all the LV ETFs out there, I continue to like EEMV.
Kevin
After opening link use the scroll bar embedded in the presentation to view the slides.
A Bull Market in Fear
http://www.thetrader.se/wp-content/uploads/2012/10/ArtemisVegaQ32012_Volatility-of-an-Impossible-Object1.pdf
Thanks for the full text...I like his style of writing...a warm knife through the thick butter of the postmodern economy.
A few quotes from your link:
"We are now in the middle of a bull market in equities, commodities, bonds, and fear all at the same time. How can these conflicting visions of reality co-exist in the same multi-dimensional space? Welcome to the postmodern economy."
"It may be counterintuitive but you shouldn’t be afraid to climb the
wall of worry when there is a mosh pit of hedged investors below you and below them a central bank financed mound of pillows stuffed with fiat currency."
Getting back to Ted's original comment... are these "Volatility Bonds" mentioned on page 10 & page 11, which use OTM (out of the money) puts/calls of the S&P 500...the same as what SPLV attempts to do?
This is a bit above of my pay grade...