|Bid||0.00 x 1200|
|Ask||0.00 x 800|
|Day's Range||35.58 - 35.72|
|52 Week Range||28.31 - 35.72|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.29%|
Low volatility ETFs have the potential to outpace the broader market in bearish conditions or in an uncertain environment providing significant protection to the portfolio.
Low volatility ETFs had a few days in the sun last year, particularly in the fourth quarter when the S&P 500 tumbled nearly 15%.The S&P 500 finished 2018 with annualized volatility of 17%, the highest reading over the past six years, according to ETF Replay data. That market turbulence prompted investors to turn to low volatility ETFs for stability and those funds obliged. The two largest U.S.-listed low volatility ETFs outperformed the S&P 500 while sporting average annualized volatility of about 13%.And that's exactly what low volatility ETFs are supposed to do: be less volatile and perform less poorly than standard equity funds when the broader market declines. Those are the expectations investors should have from low volatility ETFs. Investors expecting low volatility to offer significant out-performance when stocks are surging are likely to be disappointed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Buy These 5 Stocks to Play the Megatrend of the Century The thing about volatility is that it frequently catches investors off guard. In other words, it is better to be prepared than reactive when volatility spikes. Investors can do just that with these low volatility ETFs.Source: Shutterstock iShares Edge MSCI Min Vol Emerging Markets ETF (EEMV)Expense ratio: 0.25% per year, or $25 on a $10,000 investment.With the MSCI Emerging Markets Index up nearly 8% year-to-date, some investors will likely be tempted -- rightfully so -- to nibble at developing economies. Investors that want to do so in conservative fashion can do so with the iShares Edge MSCI Min Vol Emerging Markets ETF (BATS:EEMV), one of a few emerging markets low volatility ETFs.EEMV is up 5.10% year-to-date, reminding investors that international low volatility ETFs, like their domestic equivalents, can lag when the underlying market is rising. Still, EEMV has plenty of benefits for investors."True to its design, EEMV has historically provided investors with downside risk mitigation. In 2018, EEMV declined 58% less than that of broad EM as measured by the MSCI Emerging Markets Index," according to BlackRock. "If we extend the analysis to a longer period of time, similar performance behaviors hold. Since its first full month of live performance in November of 2011, EEMV has exhibited a downside capture of only 78%, reduced volatility by over 23%, and dampened the maximum drawdown by 22%."EEMV holds over 300 stocks. China and Taiwan combine for almost 40% of the fund's geographic weight.Source: Shutterstock Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)Expense ratio: 0.30% per year, or $30 on a $10,000 investment.The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) is one of the best low volatility ETFs for investors looking for the benefits of reduced volatility and higher income. SPHD tracks an index comprised of the 50 S&P 500 stocks with the lowest trailing 12-month volatility and the highest dividend yields.The required combination of low volatility and high dividend yields can lead to some concentration risk at the sector level. After all, not all of the 11 sectors in the S&P 500 are considered light on volatility or high-yield plays. Not surprisingly, SPHD allocates about 49% of its weight to real estate and utilities names. Those sectors usually fit the bill as high-yield and less volatile than other sectors. * 7 Forever Stocks to Buy for Long-Term Gains For income investors, SPHD definitely makes sense as this low volatility ETF has a 12-month distribution rate of 4.06% -- almost double the S&P 500's dividend yield. SPHD has a five-star Morningstar rating.Source: Shutterstock Fidelity Low Volatility Factor ETF (FDLO)Expense ratio: 0.29% per year, or $29 on a $10,000 investment.Fidelity has an expanding lineup of cost-effective ETFs, including some factor-based strategies. The Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO) is one of those funds.This low volatility ETF tracks the Fidelity U.S. Low Volatility Factor Index, "which is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies with lower volatility than the broader market," according to Fidelity.Last year, FDLO beat the S&P 500 and was less volatile than the benchmark, but the Fidelity fund lagged the two largest low volatility ETFs. This year, FDLO is beating the biggest low volatility ETF. At the sector level, FDLO is unique relative to other low volatility ETFs. Technology is the largest sector weight in FDLO at 19.62% and FDLO allocates less than 7% of its combined weight to the real estate and utilities sectors.Todd Shriber owns shares of SPHD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post 3 Low Volatility ETFs for Smooth Sailing in 2019 appeared first on InvestorPlace.
Compared to rivals such as BlackRock's (NYSE:BLK) iShares, Vanguard and others, Fidelity's lineup of exchange-traded funds (ETFs) is small. Spanning broad market, factor-based strategies and sector funds, Fidelity offers 20 equity-based ETFs and five fixed income funds. Even with its comparatively small lineup, Fidelity is one of the fastest-growing ETF issuers and the Boston-based fund giant has asserted itself as a low-cost leader. In fact, some Fidelity ETFs are among the cheapest on the market and the company is the only firm currently offering no-fee index funds. Investors can realize additional cost efficiencies by becoming Fidelity clients because Fidelity ETFs are available commission-free. * 10 High-Yield Monthly Dividend Stocks Those low fees and other cost synergies indicate some Fidelity ETFs are fine ideas for investors planning for or already in retirement. Here are some solid ideas among Fidelity ETFs for retirement planners and savers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Fidelity Total Bond ETF (FBND) Expense Ratio: 0.36%, or $36 annually per $10,000 invested The Fidelity Total Bond ETF (NYSEARCA:FBND) is an example of a Fidelity ETF that has some room for its fee to be reduced. At 0.36% per year, FBND is on the pricier end of total bond market funds, but the fund has still managed to amass nearly $479 million in assets under management in just over four years of trading. The higher fee is because FBND is actively managed. As an actively managed fund, FBND can overweight segments of the bond market that often receive just token exposure in traditional broad bond benchmarks. Additionally, this Fidelity ETF can take steps to react to rising or declining interest rates as well as boosting or reducing credit market exposure relative to the widely followed Bloomberg Barclays US Aggregate Bond Index. FBND's 30-day SEC yield of 2.94% is just 10 basis points below that of the Bloomberg Barclays US Aggregate Bond Index. Over a third of FBND's holdings carry AAA ratings, but 17.40% have a high-yield designation, which is above-average compared to passive aggregate bond strategies. This Fidelity ETF is worth the cost of admission. Over the past three years, FBND beat the Bloomberg Barclays US Aggregate Bond Index by a 2-to-1 margin. ### Fidelity Low Volatility Factor ETF (FDLO) Expense Ratio: 0.29% Investing in retirement does not mean eschewing equities altogether. However, retirement investors should reduce their equity risk profiles and low volatility strategies, such as the Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO), help with that objective. This Fidelity ETF tracks the Fidelity U.S. Low Volatility Factor Index. That benchmark "is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies with lower volatility than the broader market," according to Fidelity. * 10 Stocks to Sell in February Many traditional low volatility funds are heavy on sectors such as consumer staples and utilities, but this Fidelity ETF takes a more adventurous approach while still delivering on the promise of reduced turbulence. FDLO allocates nearly 34% of its combined weight to the technology and financial services sectors but was still able to deliver annualized volatility that was nearly 200 basis points below the S&P 500 in 2018. ### Fidelity Quality Factor ETF (FQAL) Expense Ratio: 0.29% Tapping the quality factor is a viable way for retirees to stay engaged with equities because quality stocks can be defensive and exhibit favorable volatility traits. The Fidelity Quality Factor ETF (NYSEARCA:FQAL) provides access to nearly 130 domestic stocks with favorable quality traits. Like other factor-based strategies, quality funds should be sector agnostic, but some sectors are frequent residents in quality funds. In the case of this Fidelity ETF, technology and healthcare stocks combine for over a third of the fund's weight. Eight of FQAL's top 10 holdings are dividend payers and several of those names have steadily raised payouts over the years. FQAL performed less poorly than the S&P 500 and the MSCI USA Sector Neutral Quality Index last year, while being less volatile than both indexes. ### Fidelity Corporate Bond ETF (FCOR) Expense Ratio: 0.36% Income is a vital part of the retirement equation and while high-yield corporate bonds may be too risky for some retirees, higher quality corporates can be useful for many retirees. The Fidelity Corporate Bond ETF (NYSEARCA:FCOR) is actively managed and is one of the better income ideas among Fidelity ETFs for income-focused investors. FCOR's duration of 6.70 years indicates this is an intermediate-term fund. A 30-day SEC yield of 4.23% compares favorably with many of the passively managed alternatives in this category of bond funds. This Fidelity ETF holds almost 230 bonds with an 18% weight to corporate debt designated as junk bonds. * 7 Sector ETFs to Buy for 2019 and Beyond FCOR is a global fund, but about 72% of its holdings are domestic issuers. This Fidelity ETF is outperforming the largest investment-grade corporate bond ETF over the past 12 months. ### Fidelity High Dividend ETF (FDVV) Expense Ratio: 0.29% This is one of the best Fidelity ETFs for investors seeking an above-average stream of equity income. The Fidelity High Dividend ETF (NYSEARCA:FDVV) proves as much with a trailing 12-month distribution yield of 4.04%, or almost double the dividend yield on the S&P 500. Many high dividend strategies are heavily allocated to sectors, such as real estate and utilities, that are inversely correlated to Treasury yields, explaining why some high dividend ETFs slumped last year. While FDVV finished 2018 lower, the Fidelity ETF was significantly less bad than the two largest high-yield dividend ETFs in 2018. FDVV devotes over 18% of its weight to tech stocks (high among this type of dividend fund) and just 0.55% to consumer staples names (below the category average). Last year's steadiness was meaningful as this Fidelity ETF is the best-performing domestic large-cap high dividend ETF to start 2019. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Machine-Learning Stocks to Buy for a Smarter Portfolio * 10 Stocks to Sell in February * 10 Triple-A Stocks to Buy in February Compare Brokers The post 5 Best Fidelity ETFs for Retirement Savers appeared first on InvestorPlace.
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
Among exchange-traded funds (ETFs), departures have recently been widespread with investors yanking money from a variety of equity and fixed income funds. Low volatility ETFs can help investors stay engaged with stocks during tumultuous times. A perk of low volatility ETFs is that these funds are designed to endure lower drawdowns when stocks decline, but the rub is that they do not capture all the upside delivered in strong trending bull markets.
Renewed trade clash between the United States and China has prompt investors to re-access their portfolio, leading to higher demand for lower-risk securities.
A version of this article was published in the May 2018 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Well-constructed low-volatility stock funds should offer better downside protection, a smoother ride, and better risk-adjusted performance than the market over the long term.
With volatility in the stock market not going away any time soon, investors may want to consider low-volatility investing to provide downside protection. While getting more conservative in your investment portfolio during times of increased volatility is an option, Nielson said that can often lead to lower returns than investing in equities that are less volatile. The Fidelity executive noted that, with low-volatility investing, you do get lower returns, but if the investments are constructed properly, it provides downside protection.