|Bid||74.60 x 3200|
|Ask||76.50 x 1000|
|Day's Range||74.93 - 75.18|
|52 Week Range||64.95 - 75.72|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||15.28%|
|Beta (3Y Monthly)||0.62|
|Expense Ratio (net)||0.20%|
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.
This article was originally published on ETFTrends.com. The low volatility factor is all the rage these days and rightfully so, but investors should remember that the perks of that factor are not confined to U.S stocks. Investors can move beyond domestic equities in “low vol” fashion with the iShares Edge MSCI Min Vol EAFE ETF (CBOE: EFAV) .
IShares Edge MSCI Min Vol EAFE ETF EFAV is an appealing, low-cost fund that captures these characteristics. EFAV's integrated approach to portfolio construction and proven ability to cut back on risk earn a Morningstar Analyst Rating of Silver. The strategy uses an optimizer that selects and weights stocks from the MSCI EAFE Index in a way that minimizes expected volatility.
Low volatility ETFs are getting plenty of attention in the U.S. these days and rightfully so, but that investment factor has worthy applications beyond just U.S. stocks. The iShares Edge MSCI Min Vol EAFE ETF (CBOE: EFAV) confirms as much. EFAV “seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the U.S. and Canada,” according to iShares.
While low volatility and the corresponding ETFs have been all the rage in the U.S. in 2019, investors looking for international exposure can put the factor to work for them with funds such as the iShares Edge MSCI Min Vol EAFE ETF (CBOE: EFAV). EFAV is designed to be the low volatility answer to the MSCI EAFE Index.
High-quality companies often have a defensive bent, making them a welcome addition to a diversified portfolio. Consistent dividend growth is a good proxy for quality because it demonstrates that the business is healthy, stable, and run by a shareholder-friendly management team. VIGI steers its portfolio toward high-quality firms with strong dividend growth that should offer attractive long-term returns.
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.
Momentum and low volatility have been remarkably effective investment strategies, despite their simplistic focus on past performance. Momentum is built to deliver market-beating returns, while low volatility reduces risk. Low volatility tends to work the best during market downturns and in risk-off environments.
Assets, including ETFs, that are held in individual retirement accounts (IRAs) are usually considered core positions and held for long time periods. With that in mind, investors should have exposure to ...
The exchange-traded fund's ultralow expense ratio and market-cap-weighted approach curb the cost of ownership, providing it with a significant advantage over its more expensive rivals. The fund tracks the FTSE Global All Cap ex US Index, which targets stocks of all sizes from more than 40 overseas developed and emerging markets. It weights its holdings by market capitalization, an approach that benefits investors by capturing the market's consensus opinion of each stock's value while mitigating turnover.
The couple is also comfortable on the financial front: Even though they retired during the financial crisis, the market has performed exceptionally well since then, and their portfolio currently weighs in at nearly $1 million.
The MSCI EAFE Index, one of the most widely followed gauges of ex-U.S. developed markets equities, is lower by nearly 13 percent year-to-date. The strategy is applied across geographies with plenty of success as highlighted by a more than seven-year track record for the iShares Edge MSCI Min Vol EAFE ETF (CBOE: EFAV), which has $8.83 billion in assets under management. EFAV is doing the job that low volatility ETFs are supposed to do when markets swoon: be less bad than traditional indexes.
With volatility on the rise and struggling developed markets equities looking inexpensive relative to U.S. benchmarks, investors considering international exposure may want to evaluate a low volatility approach, such as the iShares Edge MSCI Min Vol EAFE ETF (CBOE: EFAV) . EFAV “seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the U.S. and Canada,” according to iShares. EFAV tracks the MSCI EAFE Minimum Volatility (USD) Index, a low volatility answer to the widely followed MSCI EAFE Index.
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.