The differing methodologies and potential for some lag when riskier fare leads equities higher has not deterred investors from low volatility ETFs.
“There are 15 of these ETFs, with $16 billion in assets. The product didn’t exist five years ago,” according to Balchunas.
Earlier this week, BlackRock (NYSE: BLK) said its seven iShares minimum volatility ETFs, including USMV, topped a combined $7 billion in assets under management. [iShares Minimum Volatility ETFs top $10B]
With $1.44 billion of inflows, SPLV has been the top asset gatherer among PowerShares ETFs over the past year while the PowerShares S&P International Developed Low Volatility Portfolio (NYSEArca: IDLV) has added $147.3 million, or nearly half its current assets under management, over that period, according to issuer data.
PowerShares S&P 500 Low Volatility Portfolio