The core thesis of Harry M. Markowitz Minimum-Variance Strategy constitutes that efficient portfolios with a given return expectation show the least risk. Diversification enables a considerable total risk reduction of portfolios.

Basically, any combinations of diversification are conceivable. The diversification through various stocks that doesn’t show a perfect positive correlation of returns allows investors to reduce the portfolio variance. An additional yield compared to the risk-optimized portfolio is linked to additional risk.

Deutsche Börse now offers this investment strategy which is based on modern portfolio theory and awarded with the Nobel Price as a transparent, rule-based and investable index. DAXplus® Minimum Variance Indices are based on a variance-optimised portfolio compared to the corresponding national market index. The indices are adjusted and re-balanced on a quarterly basis.