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Zacks.com ETF Strategist Eric Dutram highlights: Low volatility ETFs that could be ideal for this shaky market

SPLV

 ZacksTrade Now

For Immediate Release

Chicago, IL – April 17, 2012 - Stocks and funds in this article include: PowerShares S&P 500 Low Volatility Portfolio (SPLV - ETF report)), Russell 2000 Low Volatility ETF ), Russell 1000 Low Volatility ETF ). Eric Dutram looks at six easy ways investors can reduce the volatility in their portfolios while still being exposed to broad markets.

Six Easy Ways To Target Low Volatility Stocks With ETFs written by Eric Dutram of Zacks Investment Research:  

Although broad stock markets have performed well to start the year, a number of huge risks remain to further growth. European woes, light job growth, and emerging market inflation are all concerns that do not appear to be going away anytime soon, and have rattled markets as of late.

However, there is currently a lack of quality alternatives to the equity market, thanks to anemic bond yields which are forcing many investors to reconsider their fixed income allocations. Furthermore, if stocks begin to trend lower, a stronger dollar will likely be a result, a factor that could crush commodity prices in the near term (see more in the Zacks ETF Center).

Yet thanks to the issues outlined above, stocks could see extreme levels of volatility, especially in the short term. In fact, investors have already begun to see some of this price movement as the S&P 500 has lost nearly fifty points so far in the month of April.

Due to this shakiness, it may be time for risk adverse investors to take a closer look at low volatility ETF options instead. These securities focus on equities that have lower standard deviation levels than many of their counterparts, making them interesting picks for skittish investors who want to maintain lower risk equity exposure (see Three ETFs For An Iranian Crisis).

Luckily for these investors, there are a number of choices in the space, targeting various levels of the U.S. market and the international space allowing anyone to focus in on low volatility stocks in all of the most important areas of the economy. Below, we profile six choices investors have in the low volatility space, highlighting some of the key differences between each of these interesting funds:

For the rest of this ETF article, please visit Zacks.com at: http://www.zacks.com/stock/news/73064/six-easy-ways-to-target-low-volatility-stocks-with-etfs

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=113

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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Eric Dutram
Company: Zacks.com
Phone: 312-265-9462
Email: pr@zacks.com
Visit: www.Zacks.com

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