Vanguard Mulls Low-Volatility ETFs as Category Thrives | Page 2 of 2 | ETF Trends

SPLV has been extremely popular in 2012 with net inflows of $1.7 billion, according to IndexUniverse data.

Also, these three low-volatility ETFs have each seen over $500 move in the door: iShares MSCI All Country World Minimum Volatility (NYSEArca: ACWV), iShares MSCI USA Minimum Volatility (NYSEArca: USMV) and iShares MSCI Emerging Markets Minimum Volatility (NYSEArca: EEMV).

Other international ETFs in this segment include PowerShares S&P International Developed Low Volatility (NYSEArca: IDLV) and PowerShares S&P Emerging Markets Low Volatility (NYSEArca: EELV). [Low-Volatility ETFs Help Cushion Downside Risk]

An added bonus of this category is that low-volatility stocks have historically delivered exceptional risk-adjusted returns.

“Investors of all stripes can benefit from less-volatile stocks thanks to a puzzling phenomenon: Over the past 50 years, the least-volatile stocks have performed about as well as the market, but with far less risk. Low-volatility stocks have outperformed in most international stock markets studied, too,” says Morningstar ETF analyst Samuel Lee.

Invesco PowerShares is trying to capitalize on the demand for low-volatility and dividend ETFs by combining the two hot trends in the new PowerShares S&P 500 High Dividend Portfolio (NYSEArca: SPHD). [Low-Volatility, High-Dividend ETF Has Great Sales Hook]