As investors look for ways to diversify a portfolio, consider a volatility-weighted exchange traded fund that strives to help diversify a portfolio away from potential risk posed by a traditional cap-weighted exposure, which is especially relevant after an extended bull market run.
ETF Trends publisher Tom Lydon spoke with Mannik Dhillon, Head of Investment Solutions and Product Strategy at VictoryShares, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about volatility-weighted ETF strategies.
“We have a unique approach at alternatively weighting traditional cap-weighted indices,” Dhillon said. “Smart beta, if you think about it, has to improve upon some outcome that cap-weighted has provided for years for years and at lower costs.”
Victory Capital offers a line of 11 volatility-weighted ETFs under its VictoryShares suite that are designed to track its proprietary CEMP indexes, including equity options like the VictoryShares US 500 Volatility Wtd ETF (NasdaqGM: CFA), VictoryShares US Small Cap Volatility Wtd ETF (NasdaqGM: CSA), VictoryShares International Volatility Wtd ETF (NasdaqGM: CIL) and VictoryShares Emerging Market Volatility Wtd ETF (NasdaqGM: CEZ).