If 2015 has been a volatile year for stocks, then low volatility exchange-traded funds have strutted their stuff. While the S&P 500 is up just 1.6 percent year-to-date, the PowerShares S&P 500 Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II (NYSE: SPLV)) and the iShares MSCI USA Minimum Volatility ETF (iShares Trust (NYSE: USMV)) are up an average of 3.7 percent.
Investors should expect more of the same next year, and it looks like they are already prepared as highlighted by the more than $3 billion in new assets that have flowed into USMV.
The Appeal
“Investors should brace for larger market fluctuations by choosing low volatility stocks rather than those of companies that are more market sensitive, said Chad Morganlander, portfolio manager at Stifel Nicolaus’ Washington Crossing Advisors,” reported Yahoo Finance.
Morganlander told Yahoo Finance that low volatility stocks outperform their high beta counterparts during times of divergent global monetary policies. That is exactly what investors are dealing with ...
/www.benzinga.com/trading-ideas/long-ideas/15/12/6039678/low-volatility-etfs-could-be-hot-in-2016 alt=Low Volatility ETFs Could Be Hot In 2016>Full story available on Benzinga.com
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