SPLV has seen net inflows of $414.4 million in the third quarter, according to IndexUniverse data. The ETF has posted a total return of 24.8% for the year ended Sept. 24, compared with a 31.1% gain for the S&P 500. [What is Driving the Performance of Low-Volatility ETFs?]
“In an environment of ultralow interest rates, high market volatility, and consistent flows out of equities, investors have shown a steady interest in high-dividend-paying equities and low-volatility stocks,” says Goldsborough at Morningstar.
“A word of caution (which the current wave of low-volatility investors hopefully is taking into account): During extended bull markets, investors in the least-volatile stocks should be prepared for extended periods of potential underperformance,” he added.
PowerShares S&P 500 Low Volatility ETF
