“Relative to the end of 2013, financials exposure rose sharply, while utilities exposure was significantly reduced. Meanwhile, consumer discretionary and information technology remained below 4% and underweighted relative to the broader S&P 500 Index,” said S&P Capital IQ.
The research firm notes that SPLV’s exposure to financial services names is, not surprisingly, confined to lower beta fare such as insurance providers and real estate investment trusts (REITs). [Low Vol ETFs Shine]
SPLV climbed 14.5% last year, outpacing the S&P 500 by 310 basis points while snapping a two-year losing streak against the benchmark U.S. index.
“We believe investors looking to stay in the equity market but concerned that volatility could increase in 2015 should consider SPLV. It ranks favorably for a number of modest risk and cost factors,” added S&P Capital IQ.
PowerShares S&P 500 Low Volatility Portfolio
