This has been one of those years when the low volatility factor, as it applies to exchange-traded funds, is proving to be a better bet than traditionally-weighted funds. For example, the PowerShares S&P 500 Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II (NYSE: SPLV)) is higher by 2.8 percent year-to-date, an advantage of 60 basis points over the S&P 500.
The Low Volatility Edge
Low volatility ETFs are not limited to the confines of U.S. borders, nor is the year-to-date performance advantage offered by these funds limited to U.S.-focused ETFs. When it comes to low volatility emerging markets ETFs, some of those products have topped their traditional counterparts, which is to say low volatility emerging markets ETFs have been less bad than their regular rivals.
“Emerging markets ETFs were under pressure during the first nine months of 2015 on concerns about slower economic growth and the impact of pending actions by the Federal Reserve. But in October, emerging markets have been much stronger. For those who want ...
/www.benzinga.com/trading-ideas/long-ideas/15/10/5943650/ditching-volatility-with-emerging-markets-etfs alt=Ditching Volatility With Emerging Markets ETFs>Full story available on Benzinga.com
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