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High Dividend Low Volatility

Approach

The Voya High Dividend Low Volatility strategy seeks to maximize total returns and maintain lower volatility relative to the overall market. In an effort to achieve its mandate, the strategy relies on three distinct sources of excess returns – low beta, high dividend yield, and alpha model – each which have demonstrated outperformance with different risk/return profiles. We believe our focus on three distinct sources helps deliver downside protection without sacrificing the potential for attractive upside returns. As such, our multi-dimensional approach results in more than one way to win across different market environments.

Key Benefits

Fundamentally Informed Global Multi-Factor Models

  • Our long-standing proprietary models combine fundamental insights with quantitative capabilities which cannot be replicated by a pure quant manager
  • Ensures factors for each sector not only test well but make economic sense
  • Provides low-cost access to fundamental alpha sources

Seeks Downside Protection and Strong Upside Capture

Our balanced approach considers all market environments

  • Low beta may reduce downside risk when markets are down but lags in up-markets 
  • High dividend yield has the potential to perform well in both up- and down-markets
  • Alpha model seeks to generate excess returns in up markets  

Diversified Exposures

  • Avoids overcrowding by targeting lower volatility at the portfolio level – not the stock level
  • Sector-neutral approach mitigates concentrated exposures to defensive "bond proxy" sectors, thus making it less vulnerable to rising interest rates

Performance

Performance

As of 11/30/24 1 Month 3 Month YTD 1yr 3yr 5yr 10yr Since Inception (1/01/17)
Gross 6.71 7.69 25.49 30.07 11.36 11.29 - 11.79
Net 6.67 7.58 25.02 29.54 10.90 10.83 - 11.37
Index* 6.39 6.68 22.76 29.56 10.39 10.84 - 10.14

* Russell 1000 Value Index

Past performance does not guarantee future results.

Periods greater than one year are annualized. Performance data is considered final unless indicated as preliminary. Monthly performance is based on full GIPS Composite returns. Access the GIPS page for full composite details.

The Composite performance information represents the investment results of a group of fully discretionary accounts managed with the investment objective of outperforming the benchmark. Information is subject to change at any time. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged.

Literature

Investment Team

Vincent Costa

Vincent Costa, CFA

Chief Investment Officer, Equities

Years of Experience: 39

Years with Voya: 18

Vincent Costa is chief investment officer, equities at Voya Investment Management and also serves as a portfolio manager for the active quantitative and fundamental large cap value strategies. Previously at Voya, he was head of the global quantitative equity team. Prior to joining Voya, he managed quantitative equity investments at both Merrill Lynch Investment Management and Bankers Trust Company. Vinnie earned an MBA in finance from New York University's Stern School of Business and a BS in quantitative business analysis from Pennsylvania State University. He is a CFA® Charterholder.
Steven Wetter

Steven Wetter

Portfolio Manager

Years of Experience: 36

Years with Voya: 12

Steven Wetter is a portfolio manager on the quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining Voya, Steve was co-head of international indexing at BNY Mellon responsible for managing ETFs, index funds and quantitative portfolios. Prior to that, he held similar positions at Northern Trust and Bankers Trust. Steve earned an MBA in finance from New York University's Stern School of Business and a BA from the University of California at Berkeley.
Kai Yee Wong

Kai Yee Wong

Portfolio Manager

Years of Experience: 32

Years with Voya: 12

Kai Yee Wong is a portfolio manager on the quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining the firm, she worked as a senior equity portfolio manager at Northern Trust responsible for managing various global indices including developed, emerging, real estate. Prior to that, Kai Yee was a portfolio manager with Deutsche Bank. Previously, she held roles with Bankers Trust and Bank of Tokyo. Kai Yee earned a BS from New York University Stern School of Business.

Disclosures

Principal Risk

You could lose money on an investment in the strategy. Any of the following risks, among others, could affect strategy performance or cause the strategy to lose money or to underperform: Company: The price of a company’s stock could decline or underperform. The strategy may use Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on strategy performance. Companies that issue Dividend yielding equity securities are not required to continue to pay dividends on such securities and can reduce or eliminate the payment of dividends in the future. Because the strategy may invest in Other Investment Companies, you may pay a proportionate share of the expenses of that other investment company, in addition to the expenses of the strategy. Risks of the REIT's are similar to those associated with direct ownership of Real Estate, such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer. Other risks of the strategy include but are not limited to: Investment Model, Liquidity, Market, Market Capitalization, and Securities Lending.

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