Recent stock market volatility has made many investors worried about the safety of their stock portfolios. Though the stock market has bounced back recently thanks mainly to some strong earnings reports, volatility is expected to remain high due to rising concerns about global growth outlook, deflationary risks and geopolitical worries.
In such a scenario, investors should consider investing some of their assets in so called low volatility ETFs. These ETFs underperform the broader indexes in strong bull markets but during market declines, they hold up very well and provide significant protection to the portfolio. So basically by investing in these ETFs, investors sacrifice some upside but protect themselves from a lot of downside.
Though the low-volatility concept is relatively new in the ETF universe, it has become extremely popular of late. To learn more about low volatility ETFs, please watch our short video below.
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POWERSH-SP5 LVP (SPLV): ETF Research Reports
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Though the low-volatility concept is relatively new in the ETF universe, it has become extremely popular of late. To learn more about low volatility ETFs, please watch our short video below.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
POWERSH-SP5 LVP (SPLV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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