|Bid||63.49 x 1100|
|Ask||0.00 x 800|
|Day's Range||67.68 - 67.88|
|52 Week Range||53.83 - 75.94|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-10.46%|
|Beta (5Y Monthly)||0.64|
|Expense Ratio (net)||0.20%|
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.
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) .
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.