Exchange traded fund providers are introducing more ETFs designed for conservative investors who want to limit volatility in their portfolios.
BlackRock’s iShares this week listed four low-volatility ETFs. “The new funds can help provide a portfolio with downside protection while seeking to maintain some exposure to the upside price movement,” the investment manager said.
The new ETFs are iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSEArca: EEMV), iShares MSCI EAFE Minimum Volatility Index Fund (NYSEArca: EFAV), iShares MSCI USA Minimum Volatility Index Fund (NYSEArca: USMV) and iShares All Country World Minimum Volatility Index Fund (NYSEArca: ACWV).
PowerShares S&P 500 Low Volatility Fund (NYSEArca: SPLV), launched in May, has been one of the most successful ETF launches of 2011. The fund has already gathered about $450 million in assets. [ETF Spotlight: Low Volatility]
The heightened fear of a possible recession and the focus of Europe’s ongoing sovereign debt crisis has created a higher level of volatility in markets around the world. [S&P’s Favorite New ETFs]