Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
In highly volatile markets, minimum volatility ETFs end up on the wrong side, or rebalance inappropriately. If it was a fluke in 2020, well, it is happening again. Of course, they are not adjusting in real-time, so this is understandable, but their names sound more reassuring.
VMVFX grabbed my attention in 2019. The fund generated category-beating 5 Yr trailing returns with considerably less volatility. The relative performance for VMVFX deteriorated from 2019-2021. Like most factor funds, minimum volatility funds will periodically underperform relevant indexes. I prefer funds which include dividend growth stocks or wide-moat stocks to somewhat dampen volatility.
Comments
The fund generated category-beating 5 Yr trailing returns with considerably less volatility.
The relative performance for VMVFX deteriorated from 2019-2021.
Like most factor funds, minimum volatility funds will periodically underperform relevant indexes.
I prefer funds which include dividend growth stocks or wide-moat stocks to somewhat dampen volatility.