Furthermore, PowerShares recently came out with the PowerShares S&P 500 Minimum Variance Portfolio (BATS: SPMV), which provides another way for investors to track stocks that exhibit the low volatility trait. The S&P 500 Minimum Variance Portfolio tries to reflect the performance of the S&P 500 Minimum Volatility Index, which measures the performance of a portfolio of equity securities using a managed volatility strategy that seeks to achieve lower total risk than the benchmark S&P 500.

Related: There’s Still Something to be Said for Low Vol ETFs

The underlying index weights components using a managed volatility methodology that is designed to diminish the overall expected volatility or reduce the magnitude of price fluctuations of the index.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.

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