Newly revealed figures from S&P Dow Jones Indices paint a stark image. For the reason that S&P/TSX Low Volatility Index was final rebalanced on June 17, Canadian shares have continued to fall, dropping a further 8.76% (via September 15, 2022).
As is typical for a market in decline, the Low Volatility issue outperformed the broader index by 13 foundation factors, declining 8.63%. The S&P/TSX Composite Index’s volatility elevated as soon as extra in June because it had in June for each sector.
In line with S&P Dow Jones Indices knowledge from Might 31, 2021, to August 31, 2022, well being care, info know-how, and power confirmed the best trailing volatility. Information on the one-year volatility enhance for all sectors of the S&P/TSX Composite confirmed that well being care rose from 45 to 50%, info know-how from 45% to 49%, and power by 4% from 25% to 29%.
Nevertheless, the newest rebalancing of the S&P/TSX Composite Low Volatility Index, which took impact on the shut of buying and selling on September 16, 2022, resulted in both maintained or elevated positions in these sectors.
Learn extra: Why it’s time to revisit low-volatility methods