However, the BlackRock strategists reined in expectations for a Treasuries bounce as both candidates have campaigned on increased fiscal spending, which would add more debt or greater Treasury issuance and higher yields.
Consequently, with this more volatile outlook, investors may turn to low-volatility ETF strategies. For instance, the iShares Edge MSCI Min Vol USA ETF (NYSEArca: USMV) selects stocks based on variances and correlations, along with other risk factors. Additionally, the competing PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV) tracks the 100 least volatile stocks on the S&P 500.
Additionally, traders could also look to VIX-related ETPs as a means of hedging market risks, including the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX), ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) and leveraged ProShares Ultra VIX Short-Term Futures (NYSEArca: UVXY).
The VIX, or so-called fear index, is a widely observed indicator for investor sentiment in the stock market and measures the expected or implied volatility of large-cap stock options traded on the S&P 500 index. Exchange traded products that track VIX futures allow investors to profit during rising volatility or hedge against short-term turns.
For more information on market risks, visit our volatility category.