Minimum Volatility

Equity strategy designed to deliver a smoother pattern of returns

Guggenheim’s Minimum Volatility strategy seeks to achieve a smoother pattern of returns that, over time, are similar to or slightly better than traditional equity benchmarks. Our portfolios are constructed to benefit from empirical evidence that demonstrates the historical outperformance of low-volatility stocks, a market inefficiency known as the low volatility effect.  

Industry Pioneers

Nardin Baker, chief strategist for the Minimum Volatility strategy, created and implemented one of the first low volatility portfolios in 1988 and his 1991 research paper The Efficient Market Inefficiency of Capitalization-Weighted Portfolios is largely cited as proof of the low volatility effect. Nardin and Senior Portfolio Manager Ole Jakob Wold have been working together since 1994.  

Objectives-Driven Approach

We maintain a data library with information on more than 30,000 global equities. Our sophisticated volatility models and optimization technology allow us to perform dynamic research and work closely with clients to solve their specific return and risk objectives. Our minimum volatility portfolios are customizable by region (including U.S., global and emerging markets) and are optimized in an investor’s domestic currency to reduce currency-related volatility.  

Downside Protection

Our portfolios consist of stocks with historically low volatility and characteristics that tend to position them for stable near-term growth. As a result, the strategy has historically underperformed during periods of excessive optimism in broader stock markets but significantly outperformed during market downturns. This combination of performance may help the strategy achieve its goal of outperforming capitalization-weighted indices over the long term.  


Key Investment Professionals

Nardin Baker, CFA
Chief Strategist

Scott Hammond
Senior Portfolio Manager

 Ole Jakob Wold
Senior Portfolio Manager



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• Not FDIC Insured • No Bank Guarantee • May Lose Value

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Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $198 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, wealth managers, and high-net-worth investors.

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