ETF Investors Changing Tactics in More Volatile Conditions

“If you are an individual and you know what you are doing or you are working with a financial advisor, it’s about how much risk can I endure and be comfortable, and low-vol and factor investments are just a tool that can really help with that risk management without having to use a more complex product,” Dan Draper, head of Invesco PowerShares, told Ignites.


More investors may be positioning for heightened volatility ahead. While market complacency has increased in recent weeks, with volatility dissipating and equities strengthening, some warn of rising risks ahead.

“Current low levels of volatility look unsustainable,” Richard Turnill, Managing Director and Global Chief Investment Strategist for BlackRock, said in a note, pointing out that U.S. equity market volatility is hovering around its lowest level since August 2015 and is well below its long-term average.

iShares MSCI USA Minimum Volatility ETF