53.01 -0.51 (-0.96%)
After hours: 4:36PM EDT
|Bid||48.17 x 900|
|Ask||59.93 x 900|
|Day's Range||53.07 - 53.56|
|52 Week Range||42.10 - 59.70|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-11.53%|
|Beta (5Y Monthly)||0.81|
|Expense Ratio (net)||0.25%|
Volatility hasn't crept back into the markets; it has jumped back in. The COVID-19 coronavirus outbreak has sent stocks lurching over the past week. And in the face of such huge market swings, investors sometimes make rash decisions that can ultimately harm their portfolios. That's where exchange-traded funds can help - specifically, low-volatility ETFs.Big declines trigger fear, and that fear will be even more elevated when it's triggered by something like a genuine health crisis. People don't want to lose money, and they certainly don't want to lose more money than they already have. While you should always be looking for stocks to sell as a matter of regular portfolio maintenance, if you panic-sell, you risk throwing the baby out with the bathwater.In many cases, investors who jettison their stocks en masse on the way down cement their losses while leaving themselves out of the recovery.Here are 10 low-volatility ETFs that might help ward off this instinct and lessen your pain. Low-vol (and "min-vol") funds use different strategies in the name of providing portfolios that are more stable than the broader market. That not only helps muffle losses during downturns, but the reduction in volatility can give you a little peace of mind and let you participate in an eventual bounce-back. Take a look. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
According to new research from the MIT Sloan School of Management and State Street Associates, a recession could come as soon as the next six months. MIT researchers created an index comprised of four factors and then used a distance metric, the Mahalanobis distance, to determine how the current market conditions differ from prior recessions. “The Mahalanobis distance was originally conceived to measure the statistical similarity of the values of a set of dimensions for a given skull to the average values of those dimensions for a chosen group of skulls,” researchers explained in a CNBC report.
Last Friday’s 500-point drop in the Dow Jones Industrial Average amid the coronavirus outbreak fears served as a reminder to investors that they should consider low volatility ETFs. Investor fears propagated a drop in the Dow that practically eliminated the gains attained during the whole month of January. In an effort to contain the coronavirus outbreak, the World Health Organization deemed the virus a global health emergency, which comes after the U.S. confirmed its first case of human-to-human transmission.
Unlike pepperoni or sausage, emerging markets (EM) are like anchovies on pizza--they aren't for everybody. Fortunately, for skeptical investors, there are exchange-traded fund (ETF) options that help smoothen volatility such as the iShares Edge MSCI Min Vol Emerging Markets ETF (EEMV) . EEMV seeks to track the investment results of the MSCI Emerging Markets Minimum Volatility (USD) Index.
With the S&P 500 getting more expensive as it crosses record high after high, investors can look outside the U.S. for better deals, according to at least two strategists.
A trader in VIX options is is betting that a 2008-like volatility spike is on the horizon, which puts ETF investors on notice that volatility-focused funds should be on their radar despite the celebratory champagne so far in third-quarter earnings. Earnings reports have been largely positive thus far as the S&P 500 set a record high in Monday’s trading session, putting investor fears of a recession on pause. Per a Bloomberg report, trades “in call options on the Cboe Volatility Index, known as the VIX, outweighed puts by more than 2-to-1 on Friday with the index at its lowest level since July as stocks rallied.
When it comes to adopting smart beta strategies, market players will look to factor funds like value and growth as prime drivers in today's equities investing landscape or short duration bonds in the debt market. Low volatility is a trend that has been growing and could persist as the propensity for market movements ahead looms. USMV seeks the investment results of the MSCI USA Minimum Volatility (USD) Index, which measures the performance of large and mid-capitalization equity securities listed on stock exchanges in the U.S. that, in the aggregate, have lower volatility relative to the broader U.S. equity market.