Index-based volatility strategies are gaining interest

"For investors volatility has been one of the main concerns," says Xiaowei Kang, director, index research and design at S&P. He highlights the spikes in volatility in late 2008 and again in recent months. Kang explains that traditionally investors have relied on diversification to limit the impact of market fluctuations "but we all know there are limitations to asset class diversification". In this context he says S&P's volatility reduction strategies are gaining a lot of interest from ETF providers, structured product providers and investors. S&P launched the S&P 500 Low Volatilit...