Low-Volatility ETFs are Raking In Cash

March 4th at 6:30am by Tom Lydon

Exchange traded funds that track stocks with low volatility have been a popular holding during these turbulent times, with iShares recently announcing that its line of minimum volatility ETFs gathered over $4 billion in assets.

The iShares suite of low-volatility ETFs cover broad domestic and international equities:

  • iShares MSCI Emerging Markets Minimum Volatility ETF (NYSEArca: EEMV)
  • iShares MSCI EAFE Minimum Volatility ETF (NYSEArca: EFAV)
  • iShares MSCI USA Minimum Volatility ETF (NYSEArca: USMV)
  • iShares All Country World Minimum Volatility ETF (NYSEArca: ACWV)

EEMV and USMV both crossed the $1 billion mark, gather $553.9 million and $797.8 million in new inflows, respectively, since January as investors sought ways to hedge against market swings while still keeping their toes in equities, according to a press release. [Low-Volatility ETFs are ‘The New Black’]

“In an environment in which macro uncertainty continues to lead to financial market volatility, investors are complimenting their portfolios with iShares Minimum Volatility suite of products,” Daniel Gamba, Head of iShares Americas Institutional Business at BlackRock, said in the press release. “Investors also recognize there is significant evidence that Minimum Volatility funds improve risk-adjusted returns, while also cushioning portfolios during periods of heightened turbulence.” [Why Low-Volatility ETFs Remain Popular]

Last week, State Street Global Advisors joined the low-volatility ETF space, launching two new funds based on Russell indices. [A Look at Two New Low-Volatility ETFs]

Moreover, earlier this month, PowerShares added a small- and mid-cap low-volatility ETF based on S&P indices. [PowerShares to List Small- and Mid-Cap Low-Volatility ETFs]

For more information on low-volatility funds, visit our low-volatility category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.