Investors May Get More Low-Volatility ETFs | ETF Trends

Low-volatility ETFs have been popular with investors who want conservative, lower-risk exposure to the stock market.

For this reason, many fund providers are concocting new ETFs that track low-volatility indices. In turn,Thomson Reuters has created two alpha generating, low volatility indices for license by ETF distributors, mutual funds, and asset managers.

The Thomson Reuters/Sabrient Sensible Growth Low Volatility Index and the Thomson Reuters/Sabrient Sensible Growth Index were created with Sabrient Systems, LLC, according to a BusinessWire press release. [Enhanced Index ETF Performance]

“Working with such a well-respected firm provides our clients with third party validation and branding through Thomson Reuters’ independently backtested results,” said Scott Brown, President of Sabrient. “We perceived an increased need for low-volatility products in the market and wanted to provide ETF distributors and fund managers with alternative indices that leverage a unique methodology applied across large quantities of data, to generate robust risk-adjusted returns.” [Low-Volatility ETFs to Protect Against Market Gyrations]

The goal of the new indices are to distinguish between overvalued and undervalued companies based upon long and short term growth measures. Then, Sabrient’s fundamental approach of picking growth and value stocks is applied.

“Our collaborative agreement allows our clients to leverage Sabrient’s specialized intellectual property and, with these new products, to continue to generate alpha despite today’s tough market conditions,” said Steven Carroll, Head of Thomson Reuters Indices. [Best ETFs for Equal-Weighted Strategies]

Tisha Guerrero 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.