FYI: Minimum-volatility ETFs are officially in vogue.
Factor-based investing — the strategy of buying stocks or funds based on characteristics like quality or low risk — has been gaining traction this year as investors navigate uncertainty around U.S.-China trade relations and Federal Reserve policy.
Low-volatility exchange-traded funds in particular have attracted some $25 billion in inflows, according to ETF.com, signaling that investors are getting more comfortable with slicing-and-dicing their holdings in hopes of creating a better risk profile.
That’s made one factor-based fund, the iShares Edge MSCI Minimum Volatility USA ETF (USMV), an especially strong performer in 2019, with a nearly 21.5% gain versus the S&P 500′s nearly 20.5% run.
Regards,
Ted
https://www.cnbc.com/2019/10/26/ishares-head-of-fastest-growing-etf-this-year-lays-out-her-bull-case.htmlM* Snapshot USMV:
https://www.morningstar.com/etfs/bats/usmv/quote