Quality comparison: Minimum volatility and high dividend
March 26, 2024
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2 min read
HIGHLIGHTS
- Since January 1995, the S&P 500® Quality Index has outperformed the S&P 500® Value Index as well as the S&P 500® Growth Index – and with lower overall risk.
- Similarly, minimum volatility and high dividend factor-based approaches are also popular with investors, and can also be represented by S&P 500® indexes for comparison purposes.
- Comparative analysis of Quality with Minimum Volatility and High Dividend since 1995 also shows that Quality has outperformed.
- In addition, the quality factor has proven beneficial during rising markets and, importantly, has also offered protection during periods of market stress.
- Emphasizing quality within an equity portfolio can help investors harness the benefits of healthy firms that exhibit high-profitability, fortress balance sheets, and strong fundamentals.
