Conservative, “low-beta” stocks, or sectors that exhibit low volatility and tend to be less influenced by broad market moves, are picking up steam this year. It suggests that investors are worried about earnings growth and the U.S. economy, especially after U.S. gross domestic product contracted in the first quarter, the first time in three years. [Low Vol ETFs Remain Popular With Investors
“The S&P Intrinsic Value Weighted index family measures the performance by a stock’s intrinsic value which is determined by its book value and the present value of its future earnings above its cost of capital (abnormal earnings),” according to the statement.
The statement did not say if the new S&P indices will be picked by ETF providers for use with new or existing funds.
ETF Trends editorial team contributed to this post.