History
Low-volatility strategies are common in smart beta products.
Philosophy
Reduce equity risk while staying invested in the stock market.
Factor / QuantCapital preservationFactor basedDefensiveMedium complexity
Low Volatility Portfolio
A defensive equity strategy focused on lower-beta stocks.
Asset allocation
Quality Stocks
70%Bonds
30%Performance
How this allocation behaved across modern markets
Annual rebalancing, local bond and cash proxies where relevant, and optional inflation adjustment through CPI.
1970-2024Log scale
CAGR
9.8%
1970-2024
Max drawdown
-24.9%
Volatility
12.2%
Worst year
-19.6%
2008
Implementation
Local products and proxies
🌐 Low Volatility Portfolio implementation
Long-term individual investor
Use broad, low-cost funds or ETFs matching each asset class.
Account notes: Implementation depends on local account types and tax wrappers.
Costs: Prefer low-cost, liquid vehicles.
Rebalancing: Annual rebalancing or tolerance bands.
Tax: Country-specific tax treatment should be reviewed before implementation.
Product names are implementation examples for research. Availability, taxation, share classes and suitability should be checked with the investor's broker and tax situation.
Similar portfolios
Adjacent ideas in the atlas
Minimum Variance Portfolio
A portfolio optimized to reduce volatility relative to a standard equity benchmark.
Quality Stocks50%
Dividend Stocks30%
Bonds20%
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Ultimate Buy and Hold
Paul Merriman's highly diversified equity portfolio with factor tilts.
Small Cap Value30%
International Stocks30%
US Stocks20%
Emerging Markets10%
Bonds10%
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Merriman Four-Fund Portfolio
A simplified Merriman portfolio emphasizing small-cap value and diversification.
US Stocks25%
Small Cap Value25%
International Stocks25%
Emerging Markets25%
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Multi-Factor Portfolio
A diversified factor portfolio combining value, quality, momentum and size.
Value Stocks25%
Quality Stocks25%
Momentum Stocks25%
Small Cap Value25%
Open atlas entry
Ultimate Buy & Hold REIT Variant
A Merriman-style tilted equity portfolio with a dedicated REIT allocation.
US Stocks30%
International Stocks25%
Small Cap Value20%
Value Stocks15%
REITs10%
Open atlas entry