However, potential investors should be aware that since these ETFs focus more more slow and stable companies, the low volatility strategy may underperform more growth-oriented stocks if the markets turn around.
“We think the increased usage of USMV by institutional investors has been a positive for all investors,” said S&P Capital IQ. “The average daily trading volume in the past month spiked to 3.3 million, up from 2.0 million during the past six months. The bid/ask spread is $0.01, lower than most ETFs.”
PowerShares S&P 500 Low Volatility Portfolio
