Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

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.

    Support MFO

  • Donate through PayPal

Minimum Volatility ETFs Failing Again?

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.

Shorter-term YTD view from Stockcharts, LINK1

Longer-term 3-Yr view from PV, LINK2

Comments

  • edited March 8
    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.



Sign In or Register to comment.