ACWV: Effective Risk Reduction Strategy

Fred PiardInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryiShares MSCI Global Min Vol Factor ETF delivers global equity exposure with lower volatility than its parent index represented by ACWI.ACWV exhibits value characteristics and reduced company risk versus ACWI.While ACWV underperforms ACWI and U.S. low-volatility peers in total return, it excels in minimizing drawdowns and volatility.Macro trends have hindered ACWV’s returns, but its superior risk reduction and international diversification position it well for risk-averse investors.Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » jabkitticha/iStock via Getty Images ACWV Strategy iShares MSCI Global Min Vol Factor ETF (ACWV) seeks to provide exposure to global equities with lower volatility relative to the broad market. ACWV was launched on 10/18/2011, has a portfolio of 380 stocks, aThis article was written byFred Piard16.27K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of JNJ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.