Volatility‑control funds have pushed their equity holdings to levels close to a record, heightening the risk that a sudden market downturn could trigger a wave of selling. The surge in exposure comes as investors seek protection from market swings, but the concentration of positions in equities may amplify the impact of a sharp decline. This development raises concerns among market watchers about potential liquidity strains and the speed at which a selloff could unfold.
Volatility control funds near record equity exposure, raising selloff risk Reuters
