Related: The ABCs of ESG: The Easy Way to Invest Responsibly
The rate-sensitive utilities and real estate sectors combine for almost 42% of SPLV’s roster.
Market segments will perform differently during various economic cycles, and as the U.S. may be heading toward the late business cycle, exchange traded fund investors should consider which areas could drive returns or increase portfolio risks. While low-volatility exchange traded funds may not outperform in a strong bull rally over the short-term, the strategy’s ability to hedge downside risk may be worth it over the long run.
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