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Low-Volatility ETFs to the Rescue Amid Rising War Concerns
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Wall Street has been extremely volatile this year. The ongoing Russia-Ukraine war has added to the market gyrations. Russia continues to attack Ukraine while economic sanctions are being imposed on it by the United States, European Union, Australia, Japan, Taiwan and Canada.
Investors willing to sail through the current market turbulences from the ongoing Russia-Ukraine conflict-related concerns can consider iShares MSCI USA Min Vol Factor ETF (USMV - Free Report) , Invesco S&P 500 Low Volatility ETF (SPLV - Free Report) , iShares MSCI Global Min Vol Factor ETF (ACWV - Free Report) and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD - Free Report) .
According to the latest updates, representatives for Ukraine and Russia have given the nod for peace talks on the Ukraine-Belarus border “with no preconditions,” per Ukraine’s Defense Ministry. Meanwhile, Russian President Vladimir Putin asked his country’s nuclear deterrence forces to remain on high alert on Feb 27. Apart from putting economic sanctions, countries have been extending their support to Ukraine by closing their airspace to Russian aircraft.
Global markets remained volatile over the uncertainty surrounding the war. Wall Street also witnessed huge market gyrations as the markets surprisingly closed in the green on Feb 24 and Feb 25. Although the Dow Jones Industrial Average closed the last week in red, it showed good gains in the last two trading days of the week. The Dow Jones Industrial Average and the S&P 500 are standing just outside the correction territory. Strong underlying fundamentals of the U.S. economy along with investors considering the geopolitical tensions to be short term, might have been the driving factors of the recent market rally.
Going on, investors will also be closely following Federal Reserve Chairman Jerome Powell this week to find any indication regarding a rate hike in March to control hot inflation levels. The Fed’s primary inflation measure, the core personal consumption expenditures price index, also increased 5.2% year over year (per the Commerce Department data). The metric surpassed the Dow Jones estimate of a 5.1% rise.
Low-Volatility ETFs to the Rescue
Low-volatility products could be intriguing choices for those who want to continue investing in equities in turbulent market conditions. Consider the following exciting options:
iShares MSCI USA Min Vol Factor ETF offers exposure to 172 U.S. stocks with lower volatility characteristics than the broader U.S. equity market by tracking the MSCI USA Minimum Volatility (USD) Index. With AUM of $26.55 billion, iShares MSCI USA Min Vol Factor ETF charges 0.15% in expense ratio (read: 5 Low-Volatility ETFs to Bet on Rising Worries).
Invesco S&P 500 Low Volatility ETF provides exposure to stocks with the lowest realized volatility over the past 12 months. The fund is based on the S&P 500 Low Volatility Index and holds 102 securities in its basket. Invesco S&P 500 Low Volatility ETF hasAUM of $8.78 billion and charges an expense ratio of 25 basis points (bps) as stated in the prospectus (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win).
iShares MSCI Global Min Vol Factor ETF provides exposure to global stocks with potentially less risk. ACWV tracks the MSCI All Country World Minimum Volatility Index and holds 399 securities. iShares MSCI Global Min Vol Factor ETF has AUM of $5.15 billion and charges 20 bps in annual fees.
Invesco S&P 500 High Dividend Low Volatility ETF 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. Invesco S&P 500 High Dividend Low Volatility ETF has AUM of $3.09 billion and charges 30 bps in annual fees.
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Low-Volatility ETFs to the Rescue Amid Rising War Concerns
Wall Street has been extremely volatile this year. The ongoing Russia-Ukraine war has added to the market gyrations. Russia continues to attack Ukraine while economic sanctions are being imposed on it by the United States, European Union, Australia, Japan, Taiwan and Canada.
Investors willing to sail through the current market turbulences from the ongoing Russia-Ukraine conflict-related concerns can consider iShares MSCI USA Min Vol Factor ETF (USMV - Free Report) , Invesco S&P 500 Low Volatility ETF (SPLV - Free Report) , iShares MSCI Global Min Vol Factor ETF (ACWV - Free Report) and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD - Free Report) .
According to the latest updates, representatives for Ukraine and Russia have given the nod for peace talks on the Ukraine-Belarus border “with no preconditions,” per Ukraine’s Defense Ministry. Meanwhile, Russian President Vladimir Putin asked his country’s nuclear deterrence forces to remain on high alert on Feb 27. Apart from putting economic sanctions, countries have been extending their support to Ukraine by closing their airspace to Russian aircraft.
Global markets remained volatile over the uncertainty surrounding the war. Wall Street also witnessed huge market gyrations as the markets surprisingly closed in the green on Feb 24 and Feb 25. Although the Dow Jones Industrial Average closed the last week in red, it showed good gains in the last two trading days of the week. The Dow Jones Industrial Average and the S&P 500 are standing just outside the correction territory. Strong underlying fundamentals of the U.S. economy along with investors considering the geopolitical tensions to be short term, might have been the driving factors of the recent market rally.
Going on, investors will also be closely following Federal Reserve Chairman Jerome Powell this week to find any indication regarding a rate hike in March to control hot inflation levels. The Fed’s primary inflation measure, the core personal consumption expenditures price index, also increased 5.2% year over year (per the Commerce Department data). The metric surpassed the Dow Jones estimate of a 5.1% rise.
Low-Volatility ETFs to the Rescue
Low-volatility products could be intriguing choices for those who want to continue investing in equities in turbulent market conditions. Consider the following exciting options:
iShares MSCI USA Min Vol Factor ETF (USMV - Free Report)
iShares MSCI USA Min Vol Factor ETF offers exposure to 172 U.S. stocks with lower volatility characteristics than the broader U.S. equity market by tracking the MSCI USA Minimum Volatility (USD) Index. With AUM of $26.55 billion, iShares MSCI USA Min Vol Factor ETF charges 0.15% in expense ratio (read: 5 Low-Volatility ETFs to Bet on Rising Worries).
Invesco S&P 500 Low Volatility ETF (SPLV - Free Report)
Invesco S&P 500 Low Volatility ETF provides exposure to stocks with the lowest realized volatility over the past 12 months. The fund is based on the S&P 500 Low Volatility Index and holds 102 securities in its basket. Invesco S&P 500 Low Volatility ETF hasAUM of $8.78 billion and charges an expense ratio of 25 basis points (bps) as stated in the prospectus (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win).
iShares MSCI Global Min Vol Factor ETF (ACWV - Free Report)
iShares MSCI Global Min Vol Factor ETF provides exposure to global stocks with potentially less risk. ACWV tracks the MSCI All Country World Minimum Volatility Index and holds 399 securities. iShares MSCI Global Min Vol Factor ETF has AUM of $5.15 billion and charges 20 bps in annual fees.
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD - Free Report)
Invesco S&P 500 High Dividend Low Volatility ETF 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. Invesco S&P 500 High Dividend Low Volatility ETF has AUM of $3.09 billion and charges 30 bps in annual fees.