Strategy Note /
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FACTOR ALLOCATION 101: EQUAL VS VOLATILITY-WEIGHTED

    FactorResearch
    31 August 2021
    Published byFactorResearch
    1. Equal-weight and volatility-weighted allocations are two common factor allocation frameworks
    2. Risk-return ratios are not higher with volatility-weighted allocations
    3. Different reasons can explain the superiority of equal-weight allocations