By Kent Hargis, Sammy Suzuki and Jillian Geliebter
Several equity factors diverged significantly from their typical performance patterns during the COVID-19 crisis. By understanding how factor returns behaved in this market correction relative to their historic norms, investors can not only prepare for future volatility but also take advantage of short-term market dislocations.
Challenges to Safety Stocks
Factors, groups of stocks that target specific drivers of return across an index or market, had startling performance results during the coronavirus market disruption. Minimum Volatility (Min Vol) stocks outperformed the MSCI World Index in the sell-off though