The Compelling (And Simple) Case For Low Volatility ETFs

By: ETFdb
May proved to be a brutal month on Wall Street, as equity markets across the board plummeted into red territory. Poor U.S. economic data coupled with revived Euro Zone tensions painted a grim picture for the future of the global economic recovery. With investors watching their bottom lines quickly erode, many are looking for ways to minimize their exposure to the riskier and more volatile segments of the market [see also Three High-Yielding Monthly Dividend ETFs]. Enter Low Volatility ETFs. With over a dozen products to chose from, this ultra popular category of ETFs has raked in close to $2 billion in aggregate assets. Intuitively, these products are very appealing, especially for risk averse investors. But, as many investors have learned the hard way, compelling ideas don’t always translate into compelling performances [see our Low Volatility ETFdb Portfolio]. The month of May turned out to be an interesting testing ground for low volatility [...] Click here to read the original article on ETFdb.com. Related Posts: iShares Launches Minimum Volatility ETFs Low Volatility ETFs Attracting Big Inflows Russell Expands Suite Of “Factor ETFs” With Ex-U.S. Funds 101 ETF Lessons Every Financial Advisor Should Learn The 10 Most Actively Traded ETFs In The World
May proved to be a brutal month on Wall Street, as equity markets across the board plummeted into red territory. Poor U.S. economic data coupled with revived Euro Zone tensions painted a grim picture for the future of the global economic recovery. With investors watching their bottom lines quickly erode, many are looking for ways to minimize their exposure to the riskier and more volatile segments of the market [see also Three High-Yielding Monthly Dividend ETFs]. Enter Low Volatility ETFs. With over a dozen products to chose from, this ultra popular category of ETFs has raked in close to $2 billion in aggregate assets. Intuitively, these products are very appealing, especially for risk averse investors. But, as many investors have learned the hard way, compelling ideas don’t always translate into compelling performances [see our Low Volatility ETFdb Portfolio]. The month of May turned out to be an interesting testing ground for low volatility [...]

Click here to read the original article on ETFdb.com.

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