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Ride Out the Coronavirus-Led Volatility With These ETFs
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Investors seem to be spooked by the resurgence in coronavirus cases as they fear that another round of business restrictions and lockdown measures might derail the economic recovery achieved so far. The coronavirus crisis continues to be acute in the United States, as the death toll has now crossed 146,000 with at least 4.2 million cases reported. Making the situation worse, more than 1000 deaths from the disease were recorded each day for four consecutive days last week, per a CNN report.
Notably, researchers are estimating up to 175,000 deaths related to the coronavirus outbreak by Aug 15, going by an ensemble forecast published by the US Centers for Disease Control and Prevention (per a CNN report). Raising concerns, some states are now short of hospital beds and testing labs are now flooded with samples. Studying the situation, Houston Mayor Sylvester Turner and Los Angeles Mayor Eric Garcetti have commented that there are possibilities of issuing a stay-at-home order once again to control the outbreak, per a CNN report.
Going by a CNN report, more than 150 influential US medical experts, scientists, teachers, nurses and others have taken this initiative and signed a letter requesting political authorities to shut down the country once again in order to combat the pandemic. The document has been sent to the Trump administration, leading members of Congress and state governors, per the CNN report. In order to fight the rising number of cases, states like California, Texas, Florida, Los Angeles, San Diego and Oregon along with others have halted or rolled back the reopening process.
It has been observed that the coronavirus outbreak has caused a substantial impact by slowing down economic activities as governments had to shut down commerce and impose social-distancing measures in an effort to contain the spread of the virus. Furthermore, the halting or rolling back of the economic reopening process may hurt investor sentiments and optimism around economic recovery in the near term.
Minimum Volatility ETFs for a Healthy Portfolio
Low-volatility products could be intriguing choices for those who want to stay invested in equities during turbulent market conditions. The following options are intriguing:
This fund offers exposure to 194 U.S. stocks with lower volatility characteristics than the broader U.S. equity market by tracking the MSCI USA Minimum Volatility Index. With AUM of $34.47 billion, the product charges 0.15% in expense ratio. It has a Zacks ETF Rank #2 (Buy), with a Medium-risk outlook (read: Try These ETF Strategies as the Coronavirus Crisis Worsens).
EFAV seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the United States and Canada. The fund tracks the MSCI EAFE Minimum Volatility (USD) Index and holds 270 securities. It has amassed $10.70 billion in its asset base. EFAV charges 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Low-risk outlook (read: Global Low-Volatility ETFs to Brave the 2nd Wave of Coronavirus).
This ETF provides exposure to stocks with the lowest realized volatility over the past 12 months. It tracks the S&P 500 Low Volatility Index and holds 102 securities in its basket. SPLV has amassed $8.77 billion in its asset base. It charges 25 bps in annual fees and has a Zacks ETF Rank #2, with a Medium-risk outlook (read: 5 ETF Ideas for a Winning Portfolio in the Second Half).
The fund provides exposure to global stocks with potentially less risk. The fund tracks the MSCI All Country World Minimum Volatility Index and holds 383 securities. It has AUM of $5.78 billion and charges 20 bps in annual fees. ACWV has a Low-risk outlook.
The fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Low Volatility High Dividend Index. It holds 51 securities. The fund has AUM of $2.48 billion and charges 30 bps in annual fees. It has a Medium-risk outlook.
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Ride Out the Coronavirus-Led Volatility With These ETFs
Investors seem to be spooked by the resurgence in coronavirus cases as they fear that another round of business restrictions and lockdown measures might derail the economic recovery achieved so far. The coronavirus crisis continues to be acute in the United States, as the death toll has now crossed 146,000 with at least 4.2 million cases reported. Making the situation worse, more than 1000 deaths from the disease were recorded each day for four consecutive days last week, per a CNN report.
Notably, researchers are estimating up to 175,000 deaths related to the coronavirus outbreak by Aug 15, going by an ensemble forecast published by the US Centers for Disease Control and Prevention (per a CNN report). Raising concerns, some states are now short of hospital beds and testing labs are now flooded with samples. Studying the situation, Houston Mayor Sylvester Turner and Los Angeles Mayor Eric Garcetti have commented that there are possibilities of issuing a stay-at-home order once again to control the outbreak, per a CNN report.
Going by a CNN report, more than 150 influential US medical experts, scientists, teachers, nurses and others have taken this initiative and signed a letter requesting political authorities to shut down the country once again in order to combat the pandemic. The document has been sent to the Trump administration, leading members of Congress and state governors, per the CNN report. In order to fight the rising number of cases, states like California, Texas, Florida, Los Angeles, San Diego and Oregon along with others have halted or rolled back the reopening process.
It has been observed that the coronavirus outbreak has caused a substantial impact by slowing down economic activities as governments had to shut down commerce and impose social-distancing measures in an effort to contain the spread of the virus. Furthermore, the halting or rolling back of the economic reopening process may hurt investor sentiments and optimism around economic recovery in the near term.
Minimum Volatility ETFs for a Healthy Portfolio
Low-volatility products could be intriguing choices for those who want to stay invested in equities during turbulent market conditions. The following options are intriguing:
iShares Edge MSCI Min Vol USA ETF (USMV - Free Report)
This fund offers exposure to 194 U.S. stocks with lower volatility characteristics than the broader U.S. equity market by tracking the MSCI USA Minimum Volatility Index. With AUM of $34.47 billion, the product charges 0.15% in expense ratio. It has a Zacks ETF Rank #2 (Buy), with a Medium-risk outlook (read: Try These ETF Strategies as the Coronavirus Crisis Worsens).
iShares Edge MSCI Min Vol EAFE ETF (EFAV - Free Report)
EFAV seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the United States and Canada. The fund tracks the MSCI EAFE Minimum Volatility (USD) Index and holds 270 securities. It has amassed $10.70 billion in its asset base. EFAV charges 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Low-risk outlook (read: Global Low-Volatility ETFs to Brave the 2nd Wave of Coronavirus).
Invesco S&P 500 Low Volatility ETF (SPLV - Free Report)
This ETF provides exposure to stocks with the lowest realized volatility over the past 12 months. It tracks the S&P 500 Low Volatility Index and holds 102 securities in its basket. SPLV has amassed $8.77 billion in its asset base. It charges 25 bps in annual fees and has a Zacks ETF Rank #2, with a Medium-risk outlook (read: 5 ETF Ideas for a Winning Portfolio in the Second Half).
iShares Edge MSCI Min Vol Global ETF (ACWV - Free Report)
The fund provides exposure to global stocks with potentially less risk. The fund tracks the MSCI All Country World Minimum Volatility Index and holds 383 securities. It has AUM of $5.78 billion and charges 20 bps in annual fees. ACWV has a Low-risk outlook.
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD - Free Report)
The fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Low Volatility High Dividend Index. It holds 51 securities. The fund has AUM of $2.48 billion and charges 30 bps in annual fees. It has a Medium-risk outlook.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>