|Bid||58.15 x 1300|
|Ask||60.00 x 800|
|Day's Range||57.97 - 58.47|
|52 Week Range||55.09 - 60.29|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-0.07%|
|Beta (5Y Monthly)||0.78|
|Expense Ratio (net)||0.25%|
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.
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.