Zero Beta Portfolio
What is a Zero Beta Portfolio?
A zero-beta portfolio is a portfolio built with zero systematic risk.
How Does a Zero Beta Portfolio Work?
The investments comprised in a zero-beta portfolio are chosen in such a way that the portfolio's value does not fluctuate as a result of market movements. In other words, a zero-beta portfolio eliminates systematic risk.
Why Does a Zero Beta Portfolio Matter?
The absence of systematic risk in a zero-beta portfolio effectively means that its return is the same as the risk-free rate. For this reason, the return on a zero-beta portfolio is low and, without exposure to market volatility, does not allow it to benefit from potential upswings in the value of the overall market.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
