Applied Research:

Where Have All the Utilities Gone? Financials Now Dominate a Crowded Low Vol World

Author: Anthony A. Renshaw, Ph.D.

A Low Vol Surprise? Since mid-2012, the allocation to the Financials sector in typical low volatility portfolios has doubled in most markets and is now the largest sector allocation. At the same time, allocations to utilities and consumer staples have decreased substantially. The resulting portfolios may be so concentrated in Financials that managing the resultant exposures is difficult.

Download Whitepaper: