We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Low volatility investing is back in vogue since the market environment remains extremely challenging. As the global economic growth is slowing significantly and inflation is expected to remain high, we could see continued market turbulence.
Many investors have been pouring money into low and minimum volatility funds as they seek shelter from the wild swings in the market. These ETFs hold up relatively well during market declines but may underperform the broader indexes during strong bull markets.
The iShares Edge MSCI Min Vol U.S.A. ETF (USMV - Free Report) —the most popular fund in the space— selects and weights stocks to create a portfolio that has lower volatility relative to the broader market. Vertex Pharmaceuticals (VRTX - Free Report) and Waste Management (WM - Free Report) are its top holdings.
The Invesco S&P 500 Low Volatility ETF (SPLV - Free Report) holds 100 least-volatile stocks in the S&P 500 index. PepsiCo (PEP - Free Report) and Johnson & Johnson (JNJ - Free Report) are its top holdings.
The SPDR SSGA U.S. Large Cap Low Volatility Index ETF (LGLV - Free Report) selects least volatile stocks from the broader Russell 1000 Index. Hershey (HSY - Free Report) and McDonald's (MCD - Free Report) are among the top holdings.
These ETFs have significantly outperformed the broader indexes over the past year. To learn more, please watch the short video above.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Why Low Volatility ETFs are Beating the Market
Low volatility investing is back in vogue since the market environment remains extremely challenging. As the global economic growth is slowing significantly and inflation is expected to remain high, we could see continued market turbulence.
Many investors have been pouring money into low and minimum volatility funds as they seek shelter from the wild swings in the market. These ETFs hold up relatively well during market declines but may underperform the broader indexes during strong bull markets.
The iShares Edge MSCI Min Vol U.S.A. ETF (USMV - Free Report) —the most popular fund in the space— selects and weights stocks to create a portfolio that has lower volatility relative to the broader market. Vertex Pharmaceuticals (VRTX - Free Report) and Waste Management (WM - Free Report) are its top holdings.
The Invesco S&P 500 Low Volatility ETF (SPLV - Free Report) holds 100 least-volatile stocks in the S&P 500 index. PepsiCo (PEP - Free Report) and Johnson & Johnson (JNJ - Free Report) are its top holdings.
The SPDR SSGA U.S. Large Cap Low Volatility Index ETF (LGLV - Free Report) selects least volatile stocks from the broader Russell 1000 Index. Hershey (HSY - Free Report) and McDonald's (MCD - Free Report) are among the top holdings.
These ETFs have significantly outperformed the broader indexes over the past year. To learn more, please watch the short video above.