However, low-volatility strategies are not a guarantee that losses will not occur. Furthermore, low-volatility stocks are usually ignored by big institutional investors due to their lag in a bull market. Recent research shows that over the long run, a portfolio of less-volatile stocks can actually beat a portfolio of riskier stocks — a contradiction of the theory that high returns require high risk. [Low-Volatility ETFs Vs. Dividend ETFs]
Other low-volatility ETFs:
- iShares MSCI USA Minimum Volatility Index Fund (NYSEArca:USMV)
- iShares MSCI All Country World Minimum Volatility Index Fund (NYSEArca:ACWV)
- iShares MSCI EAFE Minimum Volatility Index Fund (NYSEArca:EFAV)
PowerShares S&P 500 Low Volatility ETF
Tisha Guerrero contributed to this article.