2008 Press Releases
FOLIOfn Launches “Low Volatility” Folios: About Half the Volatility of the S&P 500, But With Strategic Exposure to Equities
03/19/2008
VIENNA, Virginia – FOLIOfn, Inc., 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&P 500 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&P 500. 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 volatiliy 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.
About Folio Investing
Folio Investing, a division of FOLIOfn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called “Folios” that deliver better control, greater transparency, and lower cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIOfn Investments, Inc., a registered broker-dealer. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC.