S&P Dow Jones Indices (S&P DJI) produces a range of low volatility indices, covering various single-country and international markets. These indices offer a perspective on the returns of lower volatility equities and provide a basis for index-linked products and benchmarks globally. This practitioner’s guide:

• Explains the construction of low volatility indices;

• Identifies the role of broader market trends, valuations, interest rates, and sector exposures in determining their performance;

• Highlights the potential applications of low volatility strategies; and

• Summarizes the evidence for the existence and potential persistence of the so-called “low volatility anomaly.”