FOLIOfn Launches "Low Volatility" Folios: About Half the Volatility of the S&P 500, but With Strategic Exposure to Equities
FOLIOfn, the innovative online brokerage firm and provider of investment portfolios, launched two Low Volatility Folios last month, which have the goal of offering about half the volatility of the S&P 500, while still retaining strategic exposure to equities to boost long-term expected returns.
Vienna, Va. (PRWEB) March 19, 2008 -- FOLIOfn, the innovative online brokerage firm and provider of investment portfolios, launched two Low Volatility Folios last month, which have the goal of offering about half the volatility of the S&P 500, while still retaining strategic exposure to equities to boost long-term expected returns.
The "Low Volatility Folio" is comprised of a mixture of ETFs and individual stocks, while the "Low Volatility ETF Folio" is comprised entirely of ETFs. These Folios are built out of securities with a low correlation to one another and the broader market, and also feature screens on volatility.
During periods when the return of the S&P500 increases or decreases significantly, the return on these portfolios are designed to increase or decrease by smaller amounts. In other words, the lower volatility of these folios means that their maximum returns and losses in any given period are likely to be of a lower magnitude than those experienced by the S&P500. These portfolios may be attractive to medium and long-term investors who want a portfolio that does not track the market during periods of large market swings, but that can provide equity exposure with lower volatility than the broader market.
A white paper discussing the theory and construction of FOLIOfn's Low Volatility Folios -- written in an easy-to-understand and informative way -- can be found at FOLIOfn's website.
FOLIOfn (www.foliofn.com) was selected as "Best of the Web for Alternative Investing" by Forbes magazine. Its unique, patented Folio Investing offering enables investors to create their own Folios -- much like creating a personalized ETF or mutual fund. Folios can afford significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Investors can also choose from over 100 Ready-To-Go (RTG) Folios, representing different market indices, sectors, geographic locations and asset classes. In addition, investors can purchase investment vehicles such as mutual funds and ETFs cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIO Investments, Inc. a registered broker dealer, and are not registered investment companies.
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