Take a poll of investors who are familiar with low volatility exchange-traded funds, of which data suggest there are plenty, and ask those investors what sectors they would use to build a new low volatility ETF.
Chances are those polled would say a low volatility ETF should include consumer staples and utilities stocks. Some healthcare names as well and maybe industrials. Obviously, not all low volatility ETFs are mirror images of each other, but, along with financial services, some combination of the aforementioned sectors is often found in low volatility ETFs.
Let's Look At USMV
Not surprisingly, higher beta sectors such as energy and materials usually garner only scant allocations in popular reduced volatility strategies. So it might surprise some investors to learn that Newmont Mining Corp (NYSE: ...
/www.benzinga.com/trading-ideas/long-ideas/16/05/7970019/look-whats-lurking-in-this-low-volatility-etf alt=Look What's Lurking In This Low Volatility ETF>Full story available on Benzinga.com
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