|Bid||57.99 x 800|
|Ask||66.00 x 800|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||4.59%|
|Beta (3Y Monthly)||0.78|
|Expense Ratio (net)||0.25%|
The low volatility factor is again proving to be a hit among exchange traded funds investors this year, but investors deploying that factor often lean toward domestic equities. As the iShares Edge MSCI Min Vol Emerging Markets ETF (CBOE: EEMV) proves, investors can reduce equity volatility in developing economies, too. The $5.46 billion EEMV follows the MSCI Emerging Markets Minimum Volatility Index and holds 337 stocks.
Now more than ever, investors are looking to play more defense against volatility, but at the same time, don’t want to do so at the expense of higher costs. This used to be had using the S&P 500 as a buffer against volatility, but those days of yore has investors hoping for more. Yesteryear's S&P 500 featured consumer staples that gave investors peace of mind even when market volatility decided to try and spoil the party for the capital markets.
The emerging-markets universe is more dynamic than developed markets like the United States. Thus, a low-cost index fund like iShares Core MSCI Emerging Markets ETF IEMG can be a great option. IEMG tracks the MSCI Emerging Markets Investable Market Index, which includes stocks of all sizes from 24 emerging-markets countries.
Emerging markets equities and the corresponding exchange traded funds are rebounding, but as has been seen in previous eras of emerging markets bullishness, this asset class is not always known for smooth sailing. For investors looking to nibble at emerging markets stocks with lower volatility, the iShares Edge MSCI Min Vol Emerging Markets ETF (CBOE: EEMV) is a sensible option.
Skittish investors looking to participate in the emerging markets rebound can do so by tapping the low volatility factor and exchange traded funds such as the iShares MSCI Emerging Markets Minimum Volatility ETF (Cboe: EEMV) . EEMV is a low-vol variant on the widely observed MSCI Emerging Market Index, is a solid option for investors looking for a volatility-reducing strategy that provides exposure to resurgent developing world stocks. “However, given the widespread under-allocation to EM within the portfolio of many of our clients, we believe most individual investors aren’t in this camp,” said BlackRock in a note out Wednesday.
The first half of 2019 could see a continuation of weakness in Asian markets, especially after disappointing Chinese manufacturing data for December, Wong told CNBC in a recent interview. Upcoming national elections in India could generate some "positive sentiments" for investors, he said: the country boasted the best-performing stock market in all of Asia, and earnings growth is expected to come in "upwards of 20 percent" in 2019.
Volatility is back, and that has investors on the defensive. Huge market swings over prolonged periods of time can be a nightmare, prompting investors to make rash decisions that ultimately hamper their portfolios. And that's precisely what low-volatility exchange-traded funds (ETFs) are built to battle. Emotions can be an investor's worst enemy: Big declines trigger fear. No one wants to lose money, and they certainly don't want to lose more money. The problem? Some stocks sell off on their own merits, while others merely get temporarily caught up in the current, only to return to proper valuations once volatility has subsided. But anyone who bailed on the way down cemented their losses while leaving themselves out of the recovery. These seven low-volatility ETFs help fight this instinct. Low-vol funds use different strategies to create portfolios that should be more stabile than the broader market. Not only can that help minimize losses during downturns, but the lack of volatility can help calm investors and prevent them from making rash exits from the market. Take a look. SEE ALSO: The 27 Best Mutual Funds in 401(k) Retirement Plans
IShares Edge MSCI Min Vol EAFE ETF EFAV is a compelling, low-cost exchange-traded fund that captures these traits and takes additional measures to promote diversification and limit turnover. The fund tracks the MSCI EAFE Minimum Volatility Index. Its construction process starts with all stocks in the MSCI EAFE Index, and it uses an optimizer to select and weight stocks in a way that minimizes the portfolio's expected volatility while honoring several constraints.
One critique of defensive-equity (low-volatility) strategies is that they're repackaged versions of two known investment styles: value and profitability. Low-volatility strategies have had significant but inconsistent exposure to both value and profitability.
Amid fears regarding a slowdown in economic growth, trade tensions, and higher interest rates, investors chose to look into value companies that focus on dividend distribution for rebalancing the risk of their portfolios. FAANGs have been hammered in October, staging their worst month since the 2008 recession, but have lately managed a comeback. Large-cap value equities have been favored by investors seeking refuge from the market’s plunge. Asian stocks regained some of the lost ground over the past week on hopes trade tensions will ease. Closing the list, global real estate investments seem a good option as the U.S. housing market is showing signs of exhaustion. Check out our previous Trends edition at Trending: Chinese Stocks at Four-Year Lows Amid Fears of Deepening Trade Spat.