Low-volatility stocks have posted higher risk-adjusted returns during uncertain market conditions. However, the asset class tends to underperform during a bull market. Morever, low-volatility picks have also been regarded as a safe-haven asset as investors move out ow low yielding government bonds and into boring stocks with above-average dividends. [Low-Volatility ETFs: The New Safe Haven]
PowerShares also recently launched another type of low-volatility ETF, the PowerShares S&P 500 Downside Hedged ETF (NYSEArca: PHDG). [A Closer Look at Two New Volatility-Hedged ETFs]
Other low-volatility ETFs include:
- iShares MSCI All Country World Minimum Volatility (NYSEArca: ACWV)
- iShares MSCI USA Minimum Volatility (NYSEArca: USMV)
- iShares MSCI Emerging Markets Minimum Volatility (NYSEArca: EEMV)
- PowerShares S&P International Developed Low Volatility (NYSEArca: IDLV)
- PowerShares S&P Emerging Markets Low Volatility (NYSEArca: EELV)
- Direxion S&P 500 DRRC Volatility Response Shares (NYSEArca: VSPY)
For more information on low-volatility funds, visit our low-volatility category.
Max Chen contributed to this article.