Equal Weight, Quality, Momentum or Low Volatility-—Why no single factor investing strategy can guarantee you steady long-term returns
Value holds steady, but low volatility steals spotlight in 2025
The value strategy has remained among the top three factor strategies since 2021. Value investing tends to perform better when markets are on an upswing. Equity markets witnessed strong growth post-Covid-19, driven by lower interest rates, robust demand, and higher government capex. On the other hand, the low volatility strategy attained the highest rank in 2025 so far, after ranking among the bottom three strategies in three out of the four years between 2021 and 2024. With markets seeing increased turbulence in 2025 due to concerns over earnings and export growth, the low-volatility strategy outperformed.
In terms of probability of loss, the value strategy delivered…
