“If the market rallies in a sustainable manner, not with these peaks and valleys that we’ve seen, these low-volatility ETFs will definitely lose their luster because these stodgy stocks won’t move up as fast as those that are more risky,” Paul Weisbruch, vice president of ETF sales and trading at Street One Financial, said.
“The classic view is that these stocks won’t make you bankrupt, but won’t make you rich either,” according to Samuel Lee, a Morningstar analyst. But the recent performance is “a bit counterintuitive because they’ve done a pretty good job building wealth while protecting you from volatility.”
Other low-volatility ETFs include:
- iShares MSCI All Country World Minimum Volatility Index Fund (NYSEArca: ACWV)
- 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)
- PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSEArca: EELV)
- PowerShares S&P International Developed Low Volatility (NYSEArca: IDLV)
- Russell 1000 Low Volatility ETF (NYSEArca: LVOL)
- Russell 2000 Low Volatility ETF (NYSEArca: SLVY)
- Russell Developed ex-U.S. Low Volatility ETF (NYSEArca: XLVO)
PowerShares S&P 500 Low Volatility ETF
For more information on low-volatility funds, visit our low-volatility category.
Max Chen contributed to this article.