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Do Multiasset Volatility-Protection Funds Deliver?

A simple blended index can protect you better.

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We recently released a study of the generally disappointing results that much-hyped objectives-based investments have delivered to investors. A summary of the research can be found on Morningstar.com, and the full paper is on our corporate site. Today's article looks more closely at multiasset volatility-protection funds, one of the most heterogeneous subsets of objectives-based investments.

The 2007-08 financial crisis left many investors feeling understandably unmoored and searching for investments that could temper future bouts of such stomach-churning market volatility. Funds seeking to provide protection from similar downturns have multiplied since then: Of the 60 distinct strategies that we identified as volatility-protection funds, 47 have been launched since 2009.

Janet Yang, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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