Investing Safely Amid Crisis: Discover these Low-Volatility ETFs that Deliver Gains
We've identified select ETFs that provide a secure investment avenue and promise substantial returns amidst the economic turmoil
Investors often grapple with securing their portfolio during market turmoil. But the solution may be simpler than you think — ETFs! Here's a peek at top ETFs offering low volatility and solid returns amidst the recent crises.
Safeguarding your Portfolio with these ETFs
fear not, as these three ETFs have proven to be the perfect shield for your investment during these trying times. Not only do they exhibit low volatility, but they also outperform, making them a wise choice for uncertain markets.
iShares Edge MSCI World Minimum Volatility UCITS ETF (3-year Vol: 9.5% / 3-year Return: 13.4%)
When market volatility spikes, it's time to focus on the Minimum Volatility factor premium. This strategy leads to consistent returns even during market downturns. Investors can gain access to such titles with the iShares Edge MSCI World Minimum Volatility UCITS ETF (WKN: A1J781).
Invesco Variable Rate Preferred Shares UCITS ETF (3-year Vol: 9.0% / 3-year Return: 13.8%)
Preferred Shares, a popular hybrid product between bonds and stocks, offer an excellent low-volatility bet, particularly in the US. Investors can get in on this via the Invesco Variable Rate Preferred Shares UCITS ETF (WKN: A2JRFU). This ETF not only focuses on quality shares but also offers a bountiful distribution yield of 5.1%.
Franklin European Quality Dividend UCITS ETF (3-year Vol: 10.1% / 3-year Return: 28.1%)
Craving crisis-proof stocks? Look no further. The Franklin European Quality Dividend UCITS ETF (WKN: A2DTF2) is your ticket to quality European values. This ETF places emphasis not only on balance sheet figures but also on the longevity of dividend payments. Currently, investors can relish a dividend yield of 4.1%.
Additional Reads
- Stock Market Expert Warns: Buying Back Too Soon Could Spell Disaster[1]
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Insightful Information
From recent studies, here's a glimpse at top-rated low-volatility ETFs:
iShares Edge MSCI World Minimum Volatility UCITS ETF (MVOL)
- Rating: Silver Medalist
- Performance: 8.3% 1-year return (vs. 1.3% category average)
- Strategy: Targets global equities with historically lower volatility
iShares MSCI USA Min Vol Factor ETF (USMV)
- Assets: $23.3B AUM
- Fee: 0.15%
- Portfolio: Low-volatility US stocks, tech-heavy (24%), balanced sector exposure
- Rank: Zacks ETF Rank #2 (Buy)
Invesco S&P 500 Low Volatility ETF (SPLV)
- Assets: $7.6B AUM
- Sector Mix: Predominantly Financials, Utilities, Industrials, and Consumer Staples
- Methodology: Holds 100+ S&P 500 stocks with lowest 12-month volatility
Parametric Volatility Risk Premium Defensive Fund (EIVPX)
- Rating: Silver
- Strategy: Blend of equities and Treasuries with added option-selling for downside protection
- Advantage: A combination of option premium income and reduced equity risk
Franklin US Low Volatility High Dividend ETF (LVHD)
- Focus: High-dividend + low-volatility US stocks
- Performance: Outperforms Russell 1000 Value Index
- Index: QS Low Volatility High Dividend Index
- These three ETFs have proven to be a perfect shield for investments during market crises, offering low volatility and solid returns.
- The iShares Edge MSCI World Minimum Volatility UCITS ETF (WKN: A1J781) is one such ETF that focuses on the Minimum Volatility factor premium, providing consistent returns even in market downturns.
- The Invesco Variable Rate Preferred Shares UCITS ETF (WKN: A2JRFU) offers investors access to low-volatility preferred shares, a popular hybrid product between bonds and stocks, particularly in the US.
- For investors seeking crisis-proof stocks, the Franklin European Quality Dividend UCITS ETF (WKN: A2DTF2) is a promising choice, focusing on quality European values with a high dividend yield.
