Related: Factor Focus With Deutsche Smart Beta ETF
Lastly, the low vol/dividend strategy can act as an alternative to fixed-income assets as the three-decade long bull rally in bonds comes to an end. Money managers may find it harder to hit the required 60/40 stock/bond returns of yesteryear, but a low volatility and high dividend strategy may help fill in the gap.
LVHD holds almost 90 stocks, almost 42% of which have market values north of $50 billion. Utilities and consumer staples names combine for 41% of the ETF’s weight. The industrial and financial services sectors combine for 23% of LVHD’s lineup.
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