Chilling Out With Low Volatility ETFs

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