Low-Volatility ETFs

Sector allocations include consumer staples 20.5%, health care 16.1%, industrials 13.8%, utilities 12.8%, financials 10.2%, consumer discretionary 8.4%, information technology 7.3%, energy 5.8%, telecom services 3.7% and materials 1.5%.

“Our new low volatility SPDR ETFs were developed in response to increasing demand from investors looking to improve the risk adjusted returns of their portfolio, increase their equity allocation while maintaining downside protection, or tactically take a more defensive approach to the US large cap or small cap markets,” James Ross, senior managing director and global head of SPDR Exchange Traded Funds at SSgA, said in the press release.

However, low-volatility Russell index ETFs did not grab investors’ attention last year. The now defunct Russell 1000 Low Volatility ETF (former ticker LVOL) and Russell 2000 Low Volatility ETF (former ticker SLVY) closed on Oct. 24, 2012.

For more information on new product launches, visit our new ETFs category.

Max Chen contributed to this article.