Funds best positioned for volatility
August 30, 2017 2:28 PM
The markets have been unusually calm lately, but if clients are concerned about volatility, stemming either from geopolitics or Hurricane Harvey wreaking havoc in the energy sector, there are a number of measures that can help.
Standard deviation is one such gauge, which weanalyzed recently . Here, we show funds that have the smallest beta scores, either positive or negative. Scores higher than 1 indicate funds that are more volatile than the market; scores less than 1 are less so. The average value among these funds, even in absolute terms, was just 0.125, so they all hovered close to zero. This stability comes at a cost, though, as the average expense ratio was more than 1%.
We looked at funds that had at least $100 million in assets, and a one-year return of at least 8%. That’s less than the S&P 500, of course, but managing for volatility entails a willingness to accept less on the upside to guard against the downside. Scroll through to see the funds that meet those two requirements, ranked by the smallest beta scores.
All data from Morningstar.
Standard deviation is one such gauge, which we
We looked at funds that had at least $100 million in assets, and a one-year return of at least 8%. That’s less than the S&P 500, of course, but managing for volatility entails a willingness to accept less on the upside to guard against the downside. Scroll through to see the funds that meet those two requirements, ranked by the smallest beta scores.
All data from Morningstar.
20. USA Mutuals Vice Investor (VICEX)
Beta Score: 0.206
1-Yr. Returns: 12.72%
Expense Ratio: 1.49%
Total Assets (millions): $227
1-Yr. Returns: 12.72%
Expense Ratio: 1.49%
Total Assets (millions): $227
20. The Cook & Bynum (COBYX)
Beta Score: -0.206
1-Yr. Returns: 9.18%
Expense Ratio: 1.49%
Total Assets (millions): $150
1-Yr. Returns: 9.18%
Expense Ratio: 1.49%
Total Assets (millions): $150
18. Putnam Diversified Income (PDINX)
Beta Score: -0.203
1-Yr. Returns: 8.92%
Expense Ratio: 1.00%
Total Assets (millions): $3,556
1-Yr. Returns: 8.92%
Expense Ratio: 1.00%
Total Assets (millions): $3,556
17. State Street Hedged Intl Dev Eq Idx (SSHQX)
Beta Score: -0.190
1-Yr. Returns: 17.60%
Expense Ratio: 0.20%
Total Assets (millions): $2,583
1-Yr. Returns: 17.60%
Expense Ratio: 0.20%
Total Assets (millions): $2,583
16. Templeton Global Opportunities (TEGOX)
Beta Score: 0.188
1-Yr. Returns: 18.63%
Expense Ratio: 1.33%
Total Assets (millions): $446
1-Yr. Returns: 18.63%
Expense Ratio: 1.33%
Total Assets (millions): $446
16. AMG Yacktman Focused (YAFFX)
Beta Score: 0.188
1-Yr. Returns: 12.00%
Expense Ratio: 1.23%
Total Assets (millions): $4,357
1-Yr. Returns: 12.00%
Expense Ratio: 1.23%
Total Assets (millions): $4,357
14. Wells Fargo Global Small Cap (EKGAX)
Beta Score: 0.175
1-Yr. Returns: 15.45%
Expense Ratio: 1.55%
Total Assets (millions): $244
1-Yr. Returns: 15.45%
Expense Ratio: 1.55%
Total Assets (millions): $244
13. Templeton World A (TEMWX)
Beta Score: -0.172
1-Yr. Returns: 15.85%
Expense Ratio: 1.07%
Total Assets (millions): $4,732
1-Yr. Returns: 15.85%
Expense Ratio: 1.07%
Total Assets (millions): $4,732
12. Northeast Investors Trust (NTHEX)
Beta Score: -0.157
1-Yr. Returns: 11.12%
Expense Ratio: 1.31%
Total Assets (millions): $325
1-Yr. Returns: 11.12%
Expense Ratio: 1.31%
Total Assets (millions): $325
11. QS Global Equity (CFIPX)
Beta Score: 0.136
1-Yr. Returns: 17.61%
Expense Ratio: 1.30%
Total Assets (millions): $158
1-Yr. Returns: 17.61%
Expense Ratio: 1.30%
Total Assets (millions): $158
10. Ivy High Income (WRHIX)
Beta Score: 0.133
1-Yr. Returns: 10.04%
Expense Ratio: 1.67%
Total Assets (millions): $4,528
1-Yr. Returns: 10.04%
Expense Ratio: 1.67%
Total Assets (millions): $4,528
9. USAA Capital Growth (USCGX)
Beta Score: 0.123
1-Yr. Returns: 17.33%
Expense Ratio: 1.24%
Total Assets (millions): $836
1-Yr. Returns: 17.33%
Expense Ratio: 1.24%
Total Assets (millions): $836
8. Oakmark Global Investor (OAKGX)
Beta Score: 0.113
1-Yr. Returns: 25.37%
Expense Ratio: 1.17%
Total Assets (millions): $2,662
1-Yr. Returns: 25.37%
Expense Ratio: 1.17%
Total Assets (millions): $2,662
7. Longleaf Partners (LLPFX)
Beta Score: 0.099
1-Yr. Returns: 13.21%
Expense Ratio: 0.95%
Total Assets (millions): $3,351
1-Yr. Returns: 13.21%
Expense Ratio: 0.95%
Total Assets (millions): $3,351
6. Davis Financial (RPFGX)
Beta Score: -0.074
1-Yr. Returns: 21.64%
Expense Ratio: 0.92%
Total Assets (millions): $1,218
1-Yr. Returns: 21.64%
Expense Ratio: 0.92%
Total Assets (millions): $1,218
5. T. Rowe Price Financial Services (PRISX)
Beta Score: -0.065
1-Yr. Returns: 26.80%
Expense Ratio: 0.88%
Total Assets (millions): $740
1-Yr. Returns: 26.80%
Expense Ratio: 0.88%
Total Assets (millions): $740
4. Gabelli Focus Five (GWSAX)
Beta Score: -0.044
1-Yr. Returns: 8.90%
Expense Ratio: 1.42%
Total Assets (millions): $160
1-Yr. Returns: 8.90%
Expense Ratio: 1.42%
Total Assets (millions): $160
3. Longleaf Partners Global (LLGLX)
Beta Score: -0.012
1-Yr. Returns: 25.82%
Expense Ratio: 1.32%
Total Assets (millions): $217
1-Yr. Returns: 25.82%
Expense Ratio: 1.32%
Total Assets (millions): $217
2. Dodge & Cox Global Stock (DODWX)
Beta Score: -0.011
1-Yr. Returns: 23.13%
Expense Ratio: 0.63%
Total Assets (millions): $9,081
1-Yr. Returns: 23.13%
Expense Ratio: 0.63%
Total Assets (millions): $9,081
1. Oakmark Global Select Investor (OAKWX)
Beta Score: -0.009
1-Yr. Returns: 23.05%
Expense Ratio: 1.15%
Total Assets (millions): $2,711
1-Yr. Returns: 23.05%
Expense Ratio: 1.15%
Total Assets (millions): $2,711
