State Street Global Advisors is the latest exchange traded fund provider to roll out low-volatility ETFs, which have been very popular with investors who want stock exposure with some downside cushion.
According to a press release, the SPDR Russell 2000 Low Volatility ETF (NYSEArca: SMLV) and the SPDR Russell 1000 Low Volatility ETF (NYSEArca: LGLV) began trading on Thursday, Feb. 21.
SMLV tries to reflect the performance of the Russell 2000 Low Volatility Index, which is comprised of small-cap stocks with the least volatility over the last 252 trading days. The fund has 170 holdings and the largest holding makes up 2.11% of the overall portfolio. SMLV comes with a 0.25% expense ratio. [Low-Volatility ETFs are ‘The New Black’]
Sector allocations include financials 31.2%, utilities 16.4%, industrials 15.5%, consumer discretionary 10.2%, information technology 9.7%, health care 6.0%, consumer staples 5.0%, materials 4.3% and energy 1.8%.
LGLV tries to reflect the performance of the Russell 1000 Low Volatility Index, which holds large-cap stocks with the least least volatility over the previous 252 trading days. The fund has 92 holdings and the largest component is 2.4% of the portfolio. LGLV has a 0.20% expense ratio.