“Over the past 50 years, the least-volatile stocks have performed about as well as the market, but with far less risk,” according to Morningstar analyst Samuel Lee.

However, over short periods, low-volatility funds may underperform the broad indices during bull market rallies since low-volatility funds are exposed to more defensive sector picks.

“Investors should be willing to underperform during extended bull markets,” Lee added.

For more information on new fund products, visit our new ETFs category.

Max Chen contributed to this article.