For Treasuries

The Volatility Targeted Portfolio strategy is developed specifically for treasuries.

Targeted Portfolio Volatility

The primary objective for this strategy is to maintain a certain target volatility level through rebalancing assets based on their expected future volatility.

Volatility targeting helps with:

• Risk management: allowing DAOs to ensure that investments are consistent with risk tolerance

• Diversification: volatility targeting can encourage a treasury to diversify investments across various assets

• Improved returns: a well-executed volatility targeting strategy could lead to better risk-adjusted returns

• Adaptability: volatility targeting allows a treasury to adapt its investment strategy to changing market conditions by controlling the exposure to market risk

• Reduced transaction costs: a standard rebalancing strategy involves periodic adjustment to the portfolio to maintain a predetermined asset allocation, which can result in frequent trading

• Enhanced performance measurement: volatility targeting provides a more consistent measure of performance by maintaining a stable level of risk

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