iShares MSCI Global Min Vol Factor ETF (BATS: ACWV)

iShares MSCI Global Min Vol Factor ETF (BATS:ACWV), Trade Ideas

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iShares Edge MSCI Min Vol Global ETF

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Going Global In Search Of Reduced Volatility

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iShares Makes A Big Currency Hedged, Low Volatility Splash

The hunt is on for low volatility opportunities, but investors don&#39;t need to focus that effort solely on U.S. equities. Some global exposure can be sprinkled into the mix with exchange traded funds, such as the iShares Edge MSCI Min Vol Global ETF (CBOE: ACWV).
<h3>What Happened</h3>
The $5.14 billion ACWV follows the MSCI All Country World Minimum Volatility Index, the low volatility counterpart to the popular MSCI All Country World Index. ACWV, which is about two months shy of its eighth anniversary, holds 444 stocks.
While this is scenario isn&#39;t guaranteed to repeat if global stocks surge, year to date, ACWV is beating its traditional equivalent, the iShares MSCI ACWI ETF (NASDSAQ: ACWI). In fact, ACWV&#39;s advantage of ACWI is a rather noticeable 330 basis points.
<h3>Why It&#39;s Important</h3>
&ldquo;This strategy uses constraints to promote diversification. It limits individual stocks to 1.5% of the portfolio while country and sector weights are held within 5% of their weights in the parent index,&rdquo; said Morningstar <a href="https://www.morningstar.com/articles/942390/a-low-risk-approach-to-the-global-market">in a recent note.</a> &ldquo;Turnover also gets capped at 10% during each semiannual rebalance to mitigate trading costs. The portfolio holds less than 20% of the stocks in its parent index. But it still diversifies stock-specific risk with only 10% of its assets in its 10 largest names.&rdquo;
None of ACWV&#39;s holdings exceed weights of 1.32%. The fund allocates nearly 18% of its weight to financial services stocks and almost a quarter of its combined weight to the consumer staples and technology stocks. As a global fund, ACWV can and does feature U.S. exposure with the world&#39;s largest economy representing over half the fund&#39;s geographic weight.
While defensive strategies tend to lag in bull markets, the downside protection offered in turbulent times is worth the trade off as ACWV is highlighting this year.
<h3>What&#39;s Next</h3>
Past performance isn&#39;t a guarantee of future returns, but ACWV&#39;s long-term track record is impressive.
&ldquo;This approach has worked well. Between October 2018 and December 2018, the MSCI ACWI declined by 12.8%, while the fund lost about half that figure,&rdquo; said Morningstar. &ldquo;And it was 27% less volatile than the benchmark from its launch in October 2011 through May 2019. Less risk pushed its risk-adjusted returns to the top of the world large-stock Morningstar Category over that stretch.&rdquo;
The research firm has a Silver rating on ACWV.
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/08/14281323/another-way-to-play-declining-interest-rates">Nail The Falling Interest Rates Trade</a> 
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/08/14281584/a-surprising-sector-etf-for-avoiding-international-revenue-exposure">Get Growth And Avoid International Revenue With This Sector</a>

The low volatility factor that&#39;s widely applied to U.S. equities has, thanks to exchange traded funds, made its way to international and global equity funds. A popular example is the iShares Edge MSCI Min Vol Global ETF (CBOE: ACWV).
ACWV is the reduced volatility spin on the widely followed MSCI ACWI Index. The ETF, which is nearly seven years old, tracks the MSCI All Country World Minimum Volatility Index.
<h3>What Happened</h3>
Over the past three years, ACWV has outperformed the MSCI ACWI Index by 50 basis points while living up to its low volatility billing. ACWV&#39;s annualized volatility during that period was 370 basis points below that of MSCI ACWI Index.
ACWV &ldquo;is a well-diversified global stock portfolio that takes a holistic approach toward reducing volatility for a low fee. It should offer a smoother ride and better risk/reward profile than most of its peers over the long term.&rdquo; said Morningstar<a href="https://www.morningstar.com/articles/870213/this-global-stock-fund-takes-steps-to-reduce-risk.html"> in a research note out last week</a>.
The $3.42 billion ACWV holds 420 stocks. Global ETFs, such as ACWV, typically feature large allocations to U.S. equities and that&#39;s true of this iShares fund. Nearly 56 percent of ACWV&#39;s holdings are domestic stocks.
<h3>Why It&#39;s Important</h3>
There&#39;s more to ACWV&#39;s methodology than simply targeting stocks with favorable volatility characteristics.
&ldquo;This strategy doesn&rsquo;t just target the least-volatile stocks. It also takes into account how stocks interact with each other to affect the portfolio&#39;s overall volatility,&rdquo; said Morningstar. &ldquo;The fund&rsquo;s global reach creates better diversification opportunities than a narrower minimum-variance strategy, which should facilitate a slightly greater reduction in volatility relative to its parent index.&rdquo;
While ACWV can feature emerging markets exposure, it does to a modest tune of about 8 percent spread across Taiwan, China and India. Japan and Switzerland are ACWV&#39;s second- and third-largest country weights, respectively, combining for about 17 percent.
<h3>What&#39;s Next</h3>
ACWV has been a solid performer this year, though it has lagged traditional equity benchmarks. The ETF is up just over a third of a percent, which is a better performance than those offered by some conventional domestic low volatility strategies. Since inception, ACWV has been a solid performer.
&ldquo;From November 2011 through August 2017, it exhibited 24 percent less volatility than its parent index. It also outpaced the benchmark by 0.76 percentage points annualized during that time,&rdquo; according to Morningstar.
The research firm has a Silver rating on ACWV.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/06/11918865/russell-1000-etfs-to-increase-in-health-care-tech-expos">Russell 1000 ETFs After The Reconstitution</a>
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A Less Volatile Basket Of Global Stocks

Retirement is no longer a time for leisure. If low interests on savings were not enough, higher Medicare premiums will now make life worse. As per an article published on Yahoo Finance, &quot;the standard Medicare Part B monthly premium <a href="https://finance.yahoo.com/news/medicare-premiums-increase-many-retirees-2018-164954066.html">will be $134</a> per month in 2018, the same amount as in 2017. But many retirees who have been paying less than the standard rate for the past several years will see a jump in their premiums&quot; (read: <a href="https://www.zacks.com/stock/news/286874/top-sector-etfs-of-2017">Top Sector ETFs of 2017</a>).
So, a smart allocation of assets is needed for retirement. Earlier, retired people used to follow a rule of thumb for asset allocation between stocks and bonds, which said that the stock part of one&#39;s portfolio should equal 100 minus the retiree&#39;s age. For example, if an investor retires at 60, 40% of his total savings would go to stocks and the rest to bonds.
But now, the picture has changed. Interest rates may go up in 2018 as yields could be on an uptrend. So, what one needs is a balanced retirement portfolio made of stocks and bonds so that steady current income can be availed of in a safe manner. While picking stocks, focus on value should be practiced. Below we highlight a few ETF strategies that could be considered in a retirement portfolio with a long-term focus.
Dividend: The First Bet &ndash; 20% of the Portfolio
Tapping dividend ETFs, when considering a stock-based ETF for one&#39;s retirement portfolio, is an intriguing idea as dividends ensure steady income. Within the dividend space, honing in on the &lsquo;dividend aristocrats&#39; could be the most beneficial way to ward off the risks resulting from market volatility. This technique looks upon the fundamental strength of the dividend payers. Dividend Aristocrats are the blue-chip dividend-paying companies that have a long history of hiking dividend payments year over year.
The need for higher yield is also necessary. Investors can have a look PowerShares High Yield Equity Dividend Achievers Portfolio ETF&nbsp;PEY which gives exposure to stocks that are chosen on the basis of dividend yield and consistent growth in dividends. PEY yields about 3.21% annually. Also, yield-seekers may plant their money in&nbsp;PowerShares S&amp;P 500 High Dividend Low Volatility ETF&nbsp;SPHD. The fund yields 3.15% annually.
A Look at Corporate Bond &ndash; 20% Weight
Investors can also consider long-term corporate bond ETFs like&nbsp;iShares iBoxx $ Investment Grade Corporate Bond ETF&nbsp;LQD for higher yield than treasuries. However, since corporate bonds are riskier in nature, honing in on investment-grade ones is a prerequisite. Investors can also take a look at ProShares Investment Grade-Interest Rate Hedged IGHG as the fund will give protection from rising rate worries. IGHG and LQD yield about 3.07% and 3.13% annually, respectively (read: <a href="https://www.zacks.com/stock/news/283489/vanguard-launches-investmentgrade-corporate-bond-etf-of-etf">Vanguard Launches Investment-Grade Corporate Bond ETF of ETF</a>).
Rely on Wide Moat&nbsp;&ndash; 20% Weight
If you are making a portfolio for retirees, companies that last long or have the &lsquo;wide moat&#39; technique may please you. These stocks have distinguished competitive advantages than those of their peers. These competitive advantages can be of various sorts including brand name, economies of scale and so on. Investors can play this concept via&nbsp;VanEck Vectors Morningstar Wide Moat ETF MOAT and&nbsp;VanEck Vectors Morningstar International Moat ETF&nbsp;MOTI (read:&nbsp;<a href="https://www.zacks.com/stock/news/277031/are-we-nearing-a-bear-market-etfs-to-lean-on">Are We Nearing a Bear Market? ETFs to Lean on</a>).
Value Stock ETFs &ndash; 10% Weight 
After a stellar run in the stock market this year, considering value funds for 2018 may be a nice idea. Cambria Global Value ETF GVAL tracks the Cambria Global Value Index which consists of stocks with strong value characteristics. In the U.S. arena, Guggenheim S&amp;P 400 Mid-Cap Pure Value RFV is a good pick.
A Tilt to Risk &ndash; 15% Weight
While most of the above-mentioned choices are value-driven, which is normally considered for a retirement portfolio, a certain amount of risk may be tested too, especially given the Trump trade. For that, we choose PowerShares DWA Momentum &amp; Low Volatility Rotation Portfolio DWLV.
Diversified Exposure: Go Global&nbsp;&ndash; 15% Weight
As several economies are looking up, a play on the global level seems warranted, but with lesser risk, given occasional geopolitical flareups. iShares Edge MSCI Min Vol Global ETF&nbsp;ACWV is thus our pick for this section (see:&nbsp;<a href="https://www.zacks.com/funds/etfs/etf-categories/World-ETFs-57">all the World ETFs here</a>).
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An ETF Retirement Portfolio For 2018

The Middle East has been hitting headlines since late November thanks to the extension of the OPEC output cut deal, Jerusalem designation crisis and Saudi Arabia&#39;s power consolidation. In late November, OPEC and non-OPEC oil behemoth Russia decided to protract oil production cuts till the end of 2018 after hours of dialogue in Vienna (read: <a href="https://www.zacks.com/stock/news/284759/whats-next-for-oil-etfs-after-fresh-opec-output-cut">What&#39;s Next for Oil ETFs After Fresh OPEC Output Cut?</a>).
While such an arrangement looks bright for the oil patch heading into 2018, and psyches up energy investors who expect a sharp rebound in oil prices, the surging U.S. output will be a lingering concern.
Second comes the Jerusalem issue. Whether Jerusalem is the capital of Israel or the State of Palestine is a perpetually rhetorical question. Israeli sovereignty over Jerusalem has never been designated internationally, and all countries keep their embassies in Tel Aviv.
Against this backdrop, President Donald Trump recognized Jerusalem as the capital of Israel recently and ordered the State Department <a href="https://www.thestreet.com/story/14413090/1/oil-stocks-set-to-win-as-trump-s-jerusalem-designation-stirs-drama.html">to move</a> the U.S. embassy in Israel &nbsp;to Jerusalem from Tel Aviv. Notably, the leaders of the <a href="http://www.bbc.com/news/world-middle-east-42265337">United Kingdom, France, Germany</a> and Canada are not in accordance with the U.S. announcement. <a href="https://www.reuters.com/article/us-usa-trump-israel-turki/senior-saudi-prince-condemns-trumps-opportunistic-jerusalem-move-idUSKBN1E51JV">Many believe</a> that the city&#39;s standing must be decided by Israel and the Palestinians.
And finally, what is brewing in Middle East is a <a href="https://www.thelondoneconomic.com/news/middle-eastern-power-struggle-causing-major-human-catastrophe-yemen/13/11/">power struggle</a> between Iran and Saudi Arabia. Reports indicated that hundreds of Yemenis &quot;will die within the next week&quot; if Saudi Arabia does not lift its barrier and permits needed for medical supplies into the country. Per a source, Yemen became the victim of the dispute between the two Middle Eastern behemoths, with pharmacies across Sanaa experiencing a grave scarcity of specialist drugs.
Saudi defended the blockade accusation by &quot;claiming it is aimed at preventing weapons being <a href="https://www.thelondoneconomic.com/news/middle-eastern-power-struggle-causing-major-human-catastrophe-yemen/13/11/">smuggled into Yemen</a> by its regional rival, Iran.&quot; Saudi Arabia ended diplomatic ties with Iran in early 2016 as a &quot;protest against the <a href="https://www.premiumtimesng.com/foreign/world-foreign/252090-iran-gives-two-conditions-restore-ties-saudi-arabia.html">attacks against Saudi diplomatic missions</a> in Iran following the Saudi execution of a Shiite cleric.&quot;
Iran recently commented that an end to the good relationship between Saudi and Israel and the stop of &quot;the <a href="https://www.premiumtimesng.com/foreign/world-foreign/252090-iran-gives-two-conditions-restore-ties-saudi-arabia.html">inhuman bombardment</a> of Yemen&quot; can revive diplomacies between Iran and Saudi. Moreover, Saudi Arabian crown prince Mohammed bin Salman seeks to tighten his grip on power by ordering a crackdown with arrests of royals, ministers and investors (read: <a href="https://www.zacks.com/stock/news/282069/etfs-in-focus-on-increased-tensions-in-saudi-arabia">ETFs in Focus on Increased Tensions in Saudi Arabia</a>).
Against this backdrop, several investing areas are likely to be up for gains and some may lose. Below we highlight a few ETF options that are under the spotlight following a series of happenings in the Middle East.
Oil
Israel and the Palestinian region do not have considerable exposure to the oil-exporting market, but the surrounding states do. Oil prices are likely to flare up on any such political crisis in the region. In any case, oil prices have been on a tear in the last three months (as of Dec 11, 2017). The fund United States Oil USO gained about 18.1% while the S&amp;P 500 has advanced about 6.9% in this time frame. The fund was up about 1% in the last five days (as of Dec 11, 2017).
Another oil fund United States Brent Oil BNO, which tracks the daily changes in percentage terms of the spot price of Brent crude oil, is also likely to gain from this turmoil. The product gained about 3.4% in the last five days, while it jumped about 22% in the last three months.
Global Low Volatility
With so many political issues emerging in the Middle East, volatility may be felt in the global investing backdrop. So, it&#39;s better to take a look at iShares Edge MSCI Min Vol Global ETF ACWV (read: <a href="https://www.zacks.com/stock/news/285033/8-etf-picks-for-december">8 ETF Picks for December</a>).
Middle East
Political unrest following Trump&#39;s decision to include Jerusalem in the Israel map as well as Saudi&#39;s power consolidation move may put Middle-East fund iShares MSCI UAE Capped ETF UAE under pressure thanks to the ongoing upheaval. iShares MSCI Saudi Arabia Capped ETF KSA and WisdomTree Middle East Dividend Fund GULF are also hogging attention following the issue (see <a href="https://www.zacks.com/funds/etfs/etf-categories/Africa-Middle-East-Equity-ETFs-52">all Africa-Middle East Equity ETFs</a> here).
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	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=UAE&amp;split=1&amp;cid=CS-BENZ-FT-285707">ISHARS-MS UAE (UAE): ETF Research Reports</a> 
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Geopolitics Brew In Middle East: ETFs In Focus

Global shares skidded lately on confusion over the passing of the tax reform in the United States, rising worries over prime minister <a href="https://finance.yahoo.com/news/asia-shares-down-caution-over-us-tax-reform-010543575--finance.html">Theresa May&#39;s leadership</a> and upheaval in the Middle East.
Signs of receding popularity of President Donald Trump flared up the possibility of a delayed tax reform last week. <a href="http://edition.cnn.com/2017/11/07/politics/2017-us-election-highlights/index.html">Democrats emerged winners</a> in Virginia and New Jersey &ndash; a key move before the 2018 midterms. This win was viewed as an increased pressure on Republicans to pass the promised tax reforms.
The Washington Post, citing anonymous sources, reported last week that Senate Republican leaders are mulling over a one-year delay in the enactment of the corporate tax cut to conform to Senate rules, as per <a href="http://www.thehindubusinessline.com/markets/forex/dollar-slips-broadly-on-report-of-possible-delays-in-us-corporate-tax/article9947736.ece">a source</a> (read: <a href="https://www.zacks.com/stock/news/282431/treasury-etfs-in-focus-on-potential-delay-in-tax-reform">Treasury ETFs in Focus on Potential Delay in Tax Reform</a>).
However, the Senate finally <a href="https://www.marketwatch.com/story/treasury-yields-jump-as-senate-passes-budget-bill-juices-risk-appetite-2017-10-20">passed a budget resolution</a> that gives way to tax cuts. This pushed up the benchmark U.S. Treasury yield to 2.40% on Nov 10 from 2.33% from a day before. Plus, higher chances of a rate hike by the Fed in December contributed to the spike in yields. So, even if tax cuts are enacted soon, rising rate worries, which can cause disturbances in the market, will not leave investors.
Leadership issues are rising even across the pond. There is rising doubt over United Kingdom&#39;s prime minister Theresa May&#39;s ability to push through her Brexit legislation &quot;<a href="http://www.independent.co.uk/news/uk/politics/theresa-may-brexit-eu-boris-johnson-letter-40-mps-michael-gove-a8051066.html">amid a growing threat to her leadership</a> and concerns over whether she still has the political clout to govern.&quot; Labour and other opposition parties indicated that Theresa May doesn&#39;t possess adequate authority over the Conservatives to ensure the bill&#39;s passage.
In the Middle East, tensions between <a href="https://www.pri.org/stories/2017-11-12/cold-war-between-iran-and-saudi-arabia-heating-here-are-5-things-you-should-know">Iran and Saudi</a> Arabia are rising as a missile was fired toward Riyadh lately. Plus, Saudi Arabian crown prince looked to solidify his power by ordering a crackdown with arrests of royals, ministers and investors as part of an apparent drive to end corruption (read: <a href="https://www.zacks.com/stock/news/282069/etfs-in-focus-on-increased-tensions-in-saudi-arabia">ETFs in Focus on Increased Tensions in Saudi Arabia</a>).
Overall, world ETF iShares MSCI ACWI ETF ACWI lost about 0.6% in the last five days (as of Nov 10, 2017).
ETFs to Play
Against such a baffling backdrop, seeking refuges in low volatility products rather than sticking to highly risky options can help investors endure a sudden downslide in the market. These global low-volatility products could be intriguing for those who want to stay invested in equities, but like the idea of focusing on minimum volatility.
Low volatility ETFs generally tend to offer positive risk-adjusted gains, though not enormous (read<a href="https://www.zacks.com/stock/news/273779/low-volatility-etfs-to-buy-if-north-korea-tensions-flare-up">: Low Volatility ETFs to Buy If North Korea Tensions Flare Up</a>).
iShares Edge MSCI Min Vol Global ETF ACWV
This product offers exposure to global stocks that have lower volatility characteristics relative to the broader developed and emerging equity markets. American firms make up about 55% of the fund while Japan (12.9%), China (5.5%) and Switzerland (4.9%) round out the top four positions.
iShares Edge MSCI Min Vol EAFE ETF EFAV
EFAV looks to replicate the performance of international equity securities that have lower absolute volatility. Country wise, the fund appears more focused on Japan (28.7%), United Kingdom (14.1%) and Switzerland (13.2%) equities.
iShares Edge MSCI Min Vol Europe ETF EUMV
It gives exposure to European developed market equities with lower volatility characteristics relative to the broader European developed equity markets. In term of country exposure, United Kingdom takes the largest share at 25%, followed by Switzerland (18%), France (11.8%) and Germany (10.7%). &nbsp;&nbsp;&nbsp;&nbsp;
Legg Mason Low Volatility High Dividend ETF LVHD 
This fund is composed of U.S. equities with a relatively high yield and low price and earnings volatility. The fund yields about 3.30% annually.
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Futures

LVHD

Time To Buy Global Low Volatility ETFs?

Anniversaries for exchange-traded funds are not always worth celebrating, but with the iShares Edge MSCI Min Vol USA ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)) and some of its iShares low volatility stablemates, this is an anniversary worth celebrating.
<h3>Half A Decade Of ETF Success For These 4</h3>
The iShares low volatility suite celebrated its fifth anniversary Tuesday with $35 billion in assets under management on a global basis. Making that statistic all the more impressive is the fact that investors have pumped $14 billion into iShares low volatility ETFs, including USMV this year. With year-to-date inflows of nearly $5.5 billion, USMV is 2016&#39;s eighth-best asset-gathering ETF.
USMV&#39;s stablemates include the $4.4 billion iShares Edge MSCI Min Vol Emerging Markets ETF (iShares Inc. (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)), the $7.9 billion iShares Edge MSCI Min Vol EAFE ETF (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>) and the $3.2 billion iShares Edge MSCI Min Vol Global ETF (iShares Inc. (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>). Like USMV, ACWV, EEMV and EFAV debuted in October 2011.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/10/8575799/another-etf-avenue-for-fighting-inflation">Another ETF Avenue For Fighting Inflation</a></bzrelatedlink>
As is the case with U.S.-focused low volatility ETFs, it is reasonable to expect an international equivalent, such as EEMV, to lag traditional funds when the target asset class is overtly rallying. And that is what emerging markets stocks are doing this year. Likewise, it should be expected that when emerging markets stocks slump, EEMV will perform less poorly, which the fund did last year.
<h3>Some Fun Stats</h3>
EEMV&#39;s recipe for volatility reduction is not a surprise. For example, Brazil and Russia are two of the most volatile emerging markets and only represent a fraction of EEMV&#39;s lineup. Conversely, the ETF is heavily allocated to low beta developing economies, including South Korea and Taiwan.
Here is an interesting statistic courtesy of <a href="http://altavista-research.com/">AltaVista Research</a>: Combined assets under management for low and minimum volatility exchange-traded funds reside around $44 billion today, up from $1 billion at the end of 2011.
On a related note, USMV is the fastest iShares ETF to reach $10 billion in assets under management, an impressive statistic when considering the sheer size of the issuer&#39;s lineup, which is the ETF&#39;s industry largest.
&ldquo;All of the iShares Min Vol ETFs celebrating their five year anniversary have delivered market-like returns, but with 15&ndash;20 percent less risk since their launch,&rdquo; said iShares in a statement. &ldquo;Since inception, USMV is in the top 1 percent of all large-cap domestic equity ETFs and mutual funds by risk adjusted returns.&rdquo;
<h3>A Few iShares Low Volatility ETF Peers</h3>
Other iShares low volatility ETFs include the iShares Edge MSCI Min Vol Japan ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/jpmv#NYSE">JPMV</a>) and the newly minted iShares Edge MSCI Min Vol USA Small-Cap ETF (iShares Trust ETF (NYSE: SMMV)).
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BlackRock, Inc. (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>)'s iShares unit, the world&#39;s largest issuer of exchange-traded funds, made a major splash Monday in the marriage of two hot ETF themes &ndash; currency hedging and low volatility &ndash; with the introduction of five such funds.
&ldquo;Four of the five funds are currency hedged versions of existing iShares minimum volatility ETFs, part of BlackRock&rsquo;s range of iShares smart beta ETFs. iShares minimum volatility ETFs are designed to help investors weather the ups and downs of the market whilst staying invested, offering the potential for lower risk and long term growth,&rdquo; said <a href="http://www.ishares.com/us/">iShares</a> in a statement.
<h3>New Names</h3>
The new ETFs from iShares include: 
<ul>
<li>iShares Currency Hedged MSCI ACWI Minimum Volatility (NYSE: HACV)</li>
<li> iShares Currency Hedged MSCI EAFE Minimum Volatility (NYSE: HEFV)</li>
<li> iShares Currency Hedged MSCI EM Minimum Volatility ETF (NYSE: HEMV)</li>
<li>iShares Currency Hedged MSCI Europe Minimum Volatility (NYSE: HEUV)</li>
<li> iShares Currency Hedged MSCI Europe Small-Cap ETF (NYSE: HEUS)</li>
</ul>

<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/pressreleases/15/10/b5950171/bats-exchange-selected-as-listing-destination-for-three-new-wisdomtree-">BATS Exchange Selected As Listing Destination For Three New WisdomTree ETFs</a></bzrelatedlink>
<h3>Not Just NYSE; BATS Global Markets Ahead</h3>
The introduction of those ETFs is also a boon for BATS Global Markets, which has been looking to bolster the number of ETFs it lists. All five of the new iShares ETFs will trade on BATS. Last week, it was reported that two SPDR ETFs are moving to BATS and three new WisdomTree ETFs also debuted on BATS. Nearly 25 iShares ETFs trade on BATS, accounting for roughly two-thirds of the exchange&#39;s ETF listings.
<h3>Associated Unhedged Parent iShares ETFs</h3>
&ldquo;Each new fund holds its unhedged &lsquo;parent&rsquo; iShares ETF and implements foreign currency forwards. They may benefit from the liquidity of the underlying iShares ETFs in which they invest, whilst also seeking to reduce the impact of international currency movements relative to the U.S. dollar. U.S. investors are exposed to currency risk when investing in international markets and adverse moves in exchange rates can impact performance in U.S. dollar terms,&rdquo; according to iShares.
HACV holds the iShares MSCI All Country World Minimum Volatility ETF (iShares Inc. (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)), while HEFV is the currency hedged answer to the iShares MSCI EAFE Minimum Volatility ETF (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>). HEMV is the currency hedged equivalent <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5943650/ditching-volatility-with-emerging-markets-etfs">of the increasingly popular</a> iShares MSCI Emerging Markets Minimum Volatility ETF (iShares Inc. (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)), while HEUV holds the iShares MSCI Europe Minimum Volatility ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/eumv#NYSE">EUMV</a>)). HEUS holds the iShares MSCI Europe Small-Cap ETF (NASDAQ: <a class="ticker" href="/stock/ieus#NASDAQ">IEUS</a>).
Led by the $6.5 billion iShares MSCI USA Minimum Volatility ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)), the iShares minimum volatility ETF suite has $15.1 billion in assets under management, according to the issuer. 
Image Credit: <a href="https://pixabay.com/en/chart-shares-dax-dow-jones-594212/">Public Domain</a>

Minimum volatility ETFs have gained a great deal of notoriety in the last several years for their conservative approach to selecting stocks with lower price fluctuations than their peers. 

	Investors that are concerned about the recent unpredictability in the stock market may want to consider these vehicles for steady capital appreciation in light of intensified turmoil in high beta sectors.

	Because of their defensive posture and focus on stable companies, many of these low volatility ETFs are breaking out to new highs this week and continuing to show strong relative momentum. 

	The first ETF to introduce this concept back in 2011 is the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>). This ETF is made up of 100 stocks from the S&amp;P 500 Index with the lowest realized volatility over the last 12 months. The fund is then rebalanced quarterly and equally weighted to ensure that the constituents conform to the index specifications.
Related: <a href="http://www.benzinga.com/etfs/broad-u-s-equity-etfs/14/05/4535307/3-small-cap-etfs-with-better-performance-than-iwm">3 Small-Cap ETFs With Better Performance Than IWM</a>
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	<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload@imceInline.load#"><img alt="splv.png" height="284" src="https://www.benzinga.com/files/u79448/splv.png" width="460" /></a></div>
</div>

	Not surprisingly, the largest sector allocations in SPLV are utilities and consumer staples, which are known for their stalwart dividends and steady business models. As a result, SPLV has a healthy dividend yield of 2.47 percent, and distributions are paid monthly to shareholders.

	So far this year, SPLV has gained 3.98 percent, which is more than double the 1.45 percent return of the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). In addition, this fund just recently hit a new all-time high.

	Investors that are looking for an international low volatility portfolio may want to consider the iShares MSCI EAFE Minimum Volatility ETF (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>). This ETF gives you exposure to approximately 190 stocks in Europe, Australia, Asia and the Far East and uses similar volatility screening characteristics as SPLV.

	The largest sector weightings in EFAV favor financials and consumer staple stocks.  In addition, the principal country weightings are split between the United Kingdom and Japan.

	Year-to-date, EFAV has gained 4.98 percent and may benefit from <a href="http://www.benzinga.com/etfs/14/05/4522697/europe-etfs-show-convincing-strength">additional strength</a> in developed European economies if the recovery continues as planned.

	Another similar low volatility strategy that includes both domestic and international stocks is the iShares MSCI Global Minimum Volatility ETF (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>).

	Conservative investors who do decide to implement a low volatility equity strategy in their portfolio should be aware that these ETFs may underperform during periods when high growth sectors are flying. That being said, they still provide diversified exposure to high quality companies in a single investment vehicle.

PowerShares S&P 500 Low Volatility Portfolio

SPLV

Minimum Volatility ETFs Hit All-Time Highs

BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares unit, the world's largest ETF issuer, said today its suite of four minimum volatility funds has crossed a combined $4 billion in assets under management.

The iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>) and the iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>), with over $1.4 billion and $1.6 billion in AUM, respectively, have lead the way for the iShares low volatility lineup. 

Since January, EEMV and USMV have both topped the $1 billion in assets mark, attracting $553.9 million and $787.8 million in new flows, respectively. The two ETFs are the sixth and seventh U.S. ETFs launched in the last two years to reach $1 billion in net assets, according to iShares.

As <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3076528/low-vol-em-etf-continues-to-impress-with-aum-gains">was previously noted with EEMV</a>, which has been one of the top-performing diversified emerging markets ETFs since its debut, it was merely a matter of "when" not "if" the fund crossed the $1 billion in AUM threshold.

"In an environment in which macro uncertainty continues to lead to financial market volatility, investors are complimenting their portfolios with iShares Minimum Volatility suite of products," said Daniel Gamba, head of iShares Americas Institutional Business at BlackRock, in the statement. "Clients are attracted to iShares Minimum Volatility products for the risk-reward trade-offs and ease of implementations these ETFs offer. Investors also recognize there is significant evidence that Minimum Volatility funds improve risk-adjusted returns, while also cushioning portfolios during periods of heightened turbulence."

The iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>), the low volatility answer to the popular iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>), has over $287.2 million in assets while the iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>) has $768 million in AUM.

For more on low volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3076528/low-vol-em-etf-continues-to-impress-with-aum-gains">here</a>.

iShares "Low Vol" ETFs Top $4B in AUM

One of the most popular ETFs launched in the past couple years is PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), and it's not hard to guess why.

After suffering through the dot-com crash and 2008 financial crisis, investors are putting a premium on safety, particularly when dipping their toes into stocks.

In the last five years, investors have pulled $548 billion from U.S. equity mutual funds and plowed more than $1 trillion into taxable fixed-income funds, according to ConverEx Group. However, equity-based ETFs have gathered $330 billion of inflows during the same period.

Recently, a decent chunk of these ETF flows has been earmarked to “safer” funds that employ low-volatility and dividend strategies with indexes.

For example, SPLV has quickly grown to over $3 billion in assets after launching in May 2011. The fund is one of the biggest success stories in ETFs the past few years, and investors can expect more low-volatility funds to hit the market in 2013.

The ETF's tracking index is comprised of the 100 stocks from the S&amp;P 500 with the lowest realized volatility the past year. Volatility is a measure of a security's tendency to jump around in price.

SPLV has been popular because the strategy is relatively easy to explain and understand, and investors want some downside protection when venturing into stocks.

The fund turned in a respectable 2012 with a 10.1% total return but it did trail the S&amp;P 500, which gained 16%, according to Morningstar. “Naturally, with a low-volatility bent, the fund emphasizes defensive sectors such as utilities and consumer staples,” the investment researcher says in a profile of SPLV.

The fund's underperformance relative to the S&amp;P 500 can be attributed partly to the overweight in these two sectors. Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) rose just 1 percent last year, while Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) added 10.7 percent.

SPLV has 31 percent in the utilities sector and 26.8 percent in consumer staples, according to manager Invesco PowerShares.

Low-volatility strategies have historically earned “excellent risk-adjusted returns” but can “perform miserably during furious bear markets,” Morningstar notes.

Now, Invesco PowerShares is readying a pair of funds in an attempt to capitalize on the success of SPLV. According to a recent filing, the firm wants to launch PowerShares S&amp;P 400 Low Volatility Portfolio and PowerShares S&amp;P 600 Low Volatility Portfolio, which would track the mid-cap and small-cap portions of the U.S. stock market, respectively.

Other existing ETFs on the market designed to track low-volatility benchmarks include:

<ul><li>iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)</li>
<li>iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)</li> 
<li>iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)</li>
<li>PowerShares S&amp;P International Developed Low Volatility (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)</li> 
<li>PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>)</li> 
<li>iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)</li>
<li>EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)</li></ul>

EELV

HILO

IDLV

Low-Volatility ETFs Ready for Next Act

Contrary to press reports published over the past two days, BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares unit, the world's largest ETF sponsor, will not raise fees on 40 of its ETFs tracking global markets. Initial <a href="http://www.indexuniverse.com/hot-topics/15570-no-joke-ishares-to-raise-fees-on-40-etfs.html">reports said iShares would raise fees</a>on some of its most popular global ETFs, including the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>). EEM is the second-largest emerging markets ETF by assets.

In a New Year's Eve interview with Benzinga, a BlackRock spokeswoman explained that all mutual fund and ETF sponsors are required by the Securities and Exchange Commission to submit filings within 120 days after the end of their fiscal years. The fiscal year for the 40 iShares funds ended August 31. 

Those filings outline the actual fees incurred as a percentage of net assets during the funds' fiscal year. These fees do not reflect what investors may have paid and current fees. Expense ratios could increase if certain assets under management thresholds are not met. In the case of iShares, the firm's board of directors previously instituted breakeven points on various ETFs that would trigger fee increases or reductions when certain AUM totals are reached. Importantly, iShares notes that those breakeven points are applied to a group of funds and it takes a group to reach certain AUM levels for new expenses to be triggered.

For example, and it should be emphasized that this is a theoretical example, if investors pulled massive sums of capital from ETFs such as the iShares MSCI France Index Fund (NYSE: <a class="ticker" href="/stock/ewq#NYSE">EWQ</a>), the iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>), the iShares MSCI Spain Index Fund (NYSE: <a class="ticker" href="/stock/ewp#NYSE">EWP</a>) and several other iShares Europe-focused ETFs, fee increases could be triggered.

However, the SEC filings do not acknowledge asset growth or shrinkage in ETFs after August 31 until the filing for the next fiscal year is made.

One example of an iShares ETF that is not seeing its fees increase, but has been home to stellar asset growth that is not readily acknowledged in regulatory filings is the iShares MSCI Philippines Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ephe#NYSE">EPHE</a>). EPHE had <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3127120/philippines-etf-flirts-with-highs-following-gdp-report">$142.2 million in AUM in July</a> only to see that number jump to $171.5 million in late November. 

As of December 31, EPHE has $218. 4 million in AUM, <a href="http://us.ishares.com/product_info/fund/overview/EPHE.htm?fundSearch=true&amp;qt=EPHE">according to iShares data</a>. The ETF's fee's will remain 0.59 percent per year. 

Another example is the iShares MSCI Turkey Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>). That ETF had <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/12/3144307/turkey-etf-breaking-out">$665 million in AUM as of early December</a>, but finished the year with almost $768 million in assets. That surge in AUM would not be reflected in SEC filings, but TUR's fees <a href="http://us.ishares.com/product_info/fund/overview/TUR.htm?fundSearch=true&amp;qt=TUR">will remain unchanged at 0.59 percent</a>.

Bottom line: BlackRock has confirmed that it is not raising fees on any of its ETFs. The firm also confirmed it will not be lowering fees on the iShares MSCI Global Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>), the iShares MSCI Emerging Markets Consumer Discretionary Fund (NYSE: <a class="ticker" href="/stock/emdi#NYSE">EMDI</a>) or the iShares MSCI Emerging Markets Energy Capped Fund (NYSE: <a class="ticker" href="/stock/emey#NYSE">EMEY</a>) as was previously reported.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Update: iShares Will Not Raise Fees on 40 ETFs

State Street's (NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) State Street Global Advisors unit, the second-largest U.S. ETF issuer, has filed plans with the Securities and Exchange Commission to possibly list two new minimum volatility ETFs. 

SSgA has filed plans for the SPDR SSgA US Minimum Volatility ETF, which will be actively managed, <a href="http://www.sec.gov/Archives/edgar/data/1516212/000119312512398426/d413856d485apos.htm#pro413856_2">according to the fund's filing</a>. 

SSgA has also filed plans for the SPDR SSgA Global Minimum Volatility ETF, which also be actively managed. The filing did not include tickers or expense ratios for either fund. 

Minimum volatility ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2805967/the-definitive-guide-to-low-volatility-etfs">have exploded in popularity</a>, led by the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>). SPLV debuted in March 2011 and has nearly $2.5 billion in assets under management. That ETF is passively managed.

The SSgA funds, should they come to market, could be rivals to the iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>) and the iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>). The two iShares funds, which are also passively managed, debuted in October and have proven popular with investors. ACWV has $623.8 million in AUM while has $366.2 million.

For more on volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2924661/what-about-high-betavolatility-etfs">here</a>.

SSgA Files Plans for 2 Minimum Volatility ETFs

There is no denying the allure of finding the next Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) or Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) is intense. There is also no denying that many investors view stocks such as General Mills (NYSE: <a class="ticker" href="/stock/gis#NYSE">GIS</a>), PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) as boring.

Stodgy stocks that are significantly less volatile than many growth names can boast at least one important factor: High returns. From 1990 through 2011, <a href="http://shortroadtoretirement.com/2012/05/volatility-stocks-outperform-high-volatility-stocks.html">the market's least risky stocks outperformed the more volatile counterparts</a> by noteworthy margins.

That is not to say General Mills outperformed Apple, but the performance of so-called boring stocks relative to more exciting issues underscores <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2805967/the-definitive-guide-to-low-volatility-etfs">the rising popularity of low volatility ETFs</a>. And since low volatility stocks are outpacing racier rivals, it is not surprising to learn that some "low vol" ETFs are outperforming traditional equivalents. 

Here are some interesting examples:

PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)
The PowerShares S&amp;P 500 Low Volatility Portfolio undoubtedly the big kahuna of the low volatility ETF world and it should be noted that year-to-date, SPLV has lagged the S&amp;P 500. However, over the past year, SPLV has a fair lead on the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).

Outperforming SPY is not the only feather in SPLV's cap. Over the past year, the ETF has outpaced the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>). Utilities and staples names represent over 60 percent of XLP's weight.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)
Just as SPLV is the dominant low volatility focused on U.S. equities, the iShares MSCI Emerging Markets Minimum Volatility Index Fund has carved out similar niche for itself in the emerging markets world. Year-to-date, EEMV has topped the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) by nearly 600 basis points and the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) by more than 400 basis points. 

With an expense ratio of 0.25 percent, EEMV is far cheaper than EEM and only moderately pricier than VWO.

iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)
The iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>) has over $34.6 billion in AUM, making it one of the 10-largest U.S. ETFs by assets. By comparison, EFAV, the low volatility equivalent is small with $73 million in AUM. This is another case of <a href="http://www.benzinga.com/news/12/05/2549131/4-ignored-etfs-up-more-than-20-ytd-gerj-vrom-tao">size not being indicative of superior returns</a> with ETFs. 

Not only have investors been treated to superior returns with EFAV this year, the 10-month old ETF has an annual expense ratio of 0.2 percent compared to 0.34 percent for EFA.

iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)
The iShares MSCI All Country World Minimum Volatility Index Fund shows some noticeable differences when compared to its traditional counterpart, the iShares MSCI All Country World Minimum Index Fund (NASDAQ: <a class="ticker" href="/stock/acwi#NASDAQ">ACWI</a>).

First, ACWI is six times larger by assets than ACWV. The former is also slightly cheaper than the latter. ACWI has an expense ratio of 0.34 percent while ACWI charges 0.35 percent. However, ACWV is able to trump that slight difference in fees by topping ACWI by about 80 basis points year-to-date.

For more on low volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2805967/the-definitive-guide-to-low-volatility-etfs">here</a>.

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Low Volatility ETFs Topping Traditional Counterparts

Until 2011, investors seeking refuge from topsy-turvy markets were forced to turn to known entities. Those being cash, high-grade government and corporate bonds and sectors such as consumer staples and utilities. 

These days, there are more low volatility choices than for investors to embrace and these new "low vol" plays come courtesy of the ETF world. Simply put, the number of ETFs advertised as low volatility funds <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/11/2113151/wild-market-are-minimum-volatility-etfs-proving-their-worth">has exploded since last year</a>. 

As a group, low volatility ETFs have had mixed success in terms of attracting assets under management. Some have thrived (one even topping the $2 billion AUM mark) while others <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/10/2001773/four-low-volatility-etfs-your-broker-forgot-to-mention">have toiled in anonymity</a>. 

Regardless of an ETF's popularity or obscurity, investors should do a little homework before running into any volatility fund. The Definitive Guide to Low Volatility ETFs is here to help.

PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)
The PowerShares S&amp;P 500 Low Volatility Portfolio is not that old (it debuted in May 2011), but the fund has quickly become the dominant name among low volatility ETFs. As of August 3, SPLV had almost $2.4 billion in assets under management. 

More important than size is the fact that SPLV is doing its job and that is providing investors with a credible alternative to a traditional S&amp;P 500 index ETF. In the past year, SPLV has outperformed the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) by 400 basis points. That type of performance differential mitigates the impact of SPLV's 0.25 percent expense ratio, which is by no means high, it is just high compared to funds like SPY.

SPLV is currently home to 98 stocks, though the fund can hold up to 100 stocks from the S&amp;P 500 Index with the lowest realized volatility over the past 12 months according to PowerShares. Not surprisingly, utilities and consumer staples combine for 60 percent of SPLV's sector weight.

PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>)
PowerShares did not rest on its laurels with SPLV. In an effort to duplicate that success in the emerging markets universe, the fourth-largest U.S. ETF sponsor introduced the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio in January.

EELV was not the first ETF to bring the low volatility/emerging markets combination to investors and that might explain why the fund has just $10.8 million in AUM. However, that small AUM total belies some important and positive facts about EELV. First, the fund is relatively inexpensive compared to other emerging markets ETFs with an expense ratio of just 0.29 percent. Second, EEMLV has gained 10.4 percent since its debut. That compares quite favorably with a gain of less than three percent for the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

Malaysia and South Africa combine for over 47 percent of EELV's country weight. Taiwan is the only other nation to receive a double-digit allocation.

PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)
The PowerShares S&amp;P International Developed Low Volatility Portfolio also debuted in January and this fund has also struggled to attract assets. As of August 3, IDLV had just $8.1 million in AUM. However, as is the case with IDLV's emerging markets counterpart, EDLV, the AUM number belies IDLV's ability to generate alpha for investors.

Since its debut, IDLV has surged 9.2 percent and that is with a 43 percent allocation to beaten down Japanese equities. Arguably, IDLV's performance indicates the fund is a valid option for investors looking for exposure to Japan without committing to a Japan-specific fund. With an allocation of 16.4 percent, Canada is the only other country to receive a double-digit weight in IDLV. 

Other country weights include Singapore, New Zealand, the U.K. and Australia. IDLV also features a reasonable expense ratio of 0.25 percent.

EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
Maybe it is because HILO advertises itself as an emerging markets dividend play <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2408820/4-em-dividend-etfs-your-broker-forgot-to-mention-hilo-ediv-de">that fund leads a somewhat anonymous existence</a>. 

HILO's lack of popularity does not mean that it is not a fine ETF. The fund has been a solid performer this year and an index yield of almost 5.4 percent helps mute the impact of a pricy 0.85 percent expense ratio. "Additional risk criteria correlated to the MSCI Emerging Market Index limits concentration in any position to 5 percent and country exposure to a maximum of 5 positions," according to EGShares.

Brazil, South Africa, China and Malaysia are HILO's top country weights and the ETF pays homage to the typical low volatility sectors as telecom and utilities combine for almost 52 percent of the fund's weight.

iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)
Given SPLV's success, it is only logical that the fund would attract a couple of competitors. One of those rivals is the <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2804052/beyond-splv-low-volatility-etfs-to-survive-a-wild-market">sometimes forgotten</a> iShares MSCI USA Minimum Volatility Index Fund.

USMV came to market in October 2011 and now has $374.4 million in AUM. The iShares offering also boasts a paltry 0.15 percent expense ratio and a year-to-date gain of 10.5 percent. Home to almost 120 stocks, USMV's sector weightings are a little different than other low volatility ETFs. Translation: USMV is not excessively weighted to staples and utilities names.

Healthcare, staples, technology and consumer discretionary all receive double-digit weights in USMV while utilities are merely the fund's sixth-largest sector weight with an allocation of 8.6 percent.

iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)
The iShares MSCI All Country World Minimum Volatility Index Fund, which shares the same inception date as USMV, has proven to be even more popular than its U.S.-focused counterpart. With a sizable roster of 264 stocks, USMV has raked an impressive $453.2 million in AUM, making it one of the more successful new ETFs of the past year. 

While ACWV paints itself as an all country play, the U.S. accounts for 53 percent of this fund's weight. With a concentration of nearly 13 percent, Japan is the only country to receive a double-digit weight. 

ACWV proves the low volatility theme works as the fund has outpaced the iShares MSCI ACWI Index Index Fund (NASDAQ: <a class="ticker" href="/stock/acwi#NASDAQ">ACWI</a>) by nearly 200 basis points this year. Staples, health care, financials and consumer discretionary are ACWV's top-four country weights. Utilities come in sixth with a weight of 8.7 percent.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)
Just as SPLV is the king of low volatility ETFs with a domestic focus, EEMV can lay claim to being <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2391114/etf-showdown-low-beta-high-stakes-eelv-eemv-hilo">the king low volatility emerging markets funds</a>.

Not only has EEMV outpaced the rival EELV and HILO by significant margins this year, but this $298.7 million fund has also left the iShares MSCI Emerging Markets Index Fund and the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) in its wake. What makes EEMV's year-to-date performance all the more impressive is that the fund allocates almost 25 percent of its weight to financials, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2804289/etf-showdown-em-bank-battle">a volatile sector in developed and developing markets alike</a>.

Consumer staples and telecom names combine for another 26.5 percent of EEMV's weight. The fund's country weights are predictable in that Taiwan and South Korea, arguably the two most conservative emerging markets, are two of the fund's three largest country allocations. EEMV has an annual expense ratio of 0.25 percent.

iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)
Just as EEMV is the "low vol" equivalent of one of the largest ETFs of any kind, in that case EEM, the iShares MSCI EAFE Minimum Volatility Index Fund has a traditional counterpart. The iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>) with $34.6 billion in AUM is also one of the 10 largest ETFs by assets on the market today.

By comparison, EFAV is small with just $73 million in AUM, but EFAV is 14 basis points cheaper than EFA. The former also keeps up a familiar trend: Low volatility funds outpacing their non-volatility counterparts in 2012. Year-to-date, EFAV has topped EFA by almost 240 basis points. 

The U.K. and Japan dominate EFAV's country lineup, combing for over 55 percent of the fund's weight. Five sectors – financials, staples, health care, industrials and telecom – receive double-digit weights in the fund.

Russell Dev ex-U.S. Low Volatility ETF (NYSE: <a class="ticker" href="/stock/xlvo#NYSE">XLVO</a>)
Just nine months old, the Russell Developed ex-U.S. Low Volatility ETF is worthy of a place in the low volatility ETF conversation. Minus fees and expenses, XLVO's 30-day SEC yield was a fair of 3.19 percent as of June 30, <a href="https://www.russelletfs.com/Products/XLVO_Overview.aspx">according to Russell data</a>.

XLVO is a bit more diverse at the country level than its developed world rivals on this list. Five countries – the U.K., Canada, Japan, Australia and Switzerland and receive double-digit weights. Be advised that XLVO does have some Eurozone exposure as Germany, France and the Netherlands combine for over 13 percent of XLVO's weight.

The $5.1 million ETF, which charges 0.25 percent per year, was home to 316 stocks as of July 31. XLVO's top-10 holdings represent just 20.1 percent of the fund's overall weight.

Russell 2000 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/slvy#NYSE">SLVY</a>)
There are multiple low volatility ETFs devoted to large cap U.S. stocks, developed world ex-U.S. stocks and emerging markets equities. However, the Russell 2000 Low Volatility ETF is the lone low volatility ETF devoted exclusively to small-caps. SLVY's 171 constituents have an average market cap of $1.35 billion. 

While volatility and beta are not the same thing, it is worth noting SLVY's beta against the Russell 3000 is 1.2. SLVY has $10 million in AUM and an annual expense ratio of 0.3 percent. To its credit, SLVY has slightly outperformed the iShares Russell 2000 Index Fund (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>).

Russell 1000 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/lvol#NYSE">LVOL</a>)
The Russell 1000 Low Volatility ETF is the largest of the Russell "low vol" lineup with almost $68.3 million in AUM. LVOL is typical of some of the other large-cap domestic funds highlighted here in that staples and utilities combine for over 38 percent of the fund's weight. Health care and producer durables also receive double-digit weights.

Home to 105 stocks, LVOL's top-10 holdings account for just 21.3 percent of the ETF's weight. That lineup includes familiar blue chips such as Dow components AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), Kraft (NASDAQ: <a class="ticker" href="/stock/kft#NASDAQ">KFT</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>). LVOL charges just 0.2 percent per year and has a beta of 0.89 against the Russell 3000.

Global

LVOL

SLVY

XLVO

The Definitive Guide to Low Volatility ETFs

The pace of new ETF issuance has slowed in 2012, but several new funds might be worth considering according to S&amp;P Capital IQ, which published a note that examined ETFs less than three-years-old.

Six funds were highlighted in the note, with four earning Overweight ratings and two garnering Market-weight ratings. 

"While down slightly from the 111 equity ETF new issues in the 12-month period ended July 2011, the most recent one-year figure is up from two periods ago," S&amp;P said. "We also see greater geographic diversification among the ETFs being issued: while the prior 12-month period saw a 60/40 split between U.S. and non-U.S. equities, the most recent 12 months saw those numbers practically reverse. Although lower in absolute numbers overall, this most recent period has seen absolute gains in the Global, Asia developed, and Europe developed regions, though only some of these funds receive a top rank of Overweight for combined performance, risk and cost factors."

One of the "new" ETFs that S&amp;P rates Overweight is the Market Vectors Oil Services ETF (NYSE: <a class="ticker" href="/stock/oih#NYSE">OIH</a>), which is only new in its current form. Van Eck Global, the parent company of Market Vectors, acquired several of the old Merrill Lynch HOLDRs products in late 2011 and OIH was among that group. 

OIH re-emerged as a Market Vectors fund in December 2011 and is still the largest and most heavily traded ETF tracking oil services stocks such as Schlumberger (NYSE: <a class="ticker" href="/stock/slb#NYSE">SLB</a>), Halliburton (NYSE: <a class="ticker" href="/stock/hal#NYSE">HAL</a>) and National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>).

The Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) also earned an Overweight rating from S&amp;P Capital IQ. With over $401 million in assets under management, SCHD is one of the more successful ETFs to come to market in the past year. The fund debuted in October 2011. SCHD charges 0.17 percent per year and its top-10 holdings include Wal-Mart (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>), Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) and Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>).

The Schwab U.S. Broad Market ETF (NYSE: <a class="ticker" href="/stock/schb#NYSE">SCHB</a>) also landed an Overweight rating from S&amp;P. SCHB, which will turn three-years-old in November, is home to $1 billion in assets under management. The fund competes with the Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="/stock/vti#NYSE">VTI</a>) and the SPDR Dow Jones Total Market ETF (NYSE: <a class="ticker" href="/stock/tmw#NYSE">TMW</a>), among others.

S&amp;P has a Market-weight rating on the wildly popular PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>). The PowerShares S&amp;P 500 Low Volatility Portfolio was an early entrant to the low volatility ETF game and has since become the largest, drawing in over $2.2 billion in AUM since its May 2011 debut. 

As a low volatility fund, more than 60 percent of SPLV's weight is devoted to utilities and staples stocks. The fund charges 0.25 percent per year.

Another low volatility play, the iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>), also received a Market-weight rating from S&amp;P. The iShares MSCI All Country World Minimum Volatility Index Fund, which debuted in October 2011, has $442 million under management. ACWV is home to 265 stocks with a 53 percent weight to the U.S. The fund charges 0.35 percent per year.

The Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>), the dominant ETF <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2636695/not-even-norway-enor-norw">tracking one of Europe's steadier economies</a>, was also rated Overweight by S&amp;P. NORW, which will enjoy its second birthday in November, has $43.7 million under management. Norway's state-run oil firm Statoil (NYSE: <a class="ticker" href="/stock/sto#NYSE">STO</a>) and oil services provider SeaDrill (NYSE: <a class="ticker" href="/stock/sdrl#NYSE">SDRL</a>) combine for over 29 percent of NORW's weight.

NORW

SCHB

SCHD

SDRL

S&P Likes Some "Young" ETFs

One of the more interesting themes regarding new ETFs to hit the market in 2011 has been the emergence of <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/11/2087737/four-high-volatility-etfs-your-broker-forgot-to-mention">volatility ETFs</a>. 

Some give investors exposure to high beta fare while others focus on <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/10/2001773/four-low-volatility-etfs-your-broker-forgot-to-mention">lowering volatility to appeal to more conservative investors</a>. 

Regardless of a volatility ETF's objective, it is clear investors like these ETFs and there is now a volatility ETF for all seasons. Let's examine 12 volatility funds that are worth watching in the year ahead.

EGShares Emerging Markets High Income/Low Beta ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
Considering that 2011 has been a tough year for emerging markets, HILO is off to a nice start. The ETF is down about 5% since its August debut, but the combination of dividends and a low volatility emerging markets play has proven alluring as investors have poured over $19 million into the ETF and average daily volume is just under 31,200 shares. One of the preferred low volatility EM options for 2012.

Russell 1000 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/lvol#NYSE">LVOL</a>)
There's a lot to like about this ETF. A low expense ratio (0.2%). It's home to 103 blue chip stocks, none receive a weight greater than 2.15%. The ETF has garnered $34.5 million in AUM since its late May debut. If 2012 is another year where defensive sectors such as staples and utilities thrive, that will be good for LVOL as those two sectors account for over 43% of the ETF's weight.

Russell Dev ex-U.S. Low Volatility ETF (NYSE: <a class="ticker" href="/stock/xlvo#NYSE">XLVO</a>) 
The search for "low vol" ETFs should not be confined to the U.S. and for those looking to emphasize developed markets, XLVO is one ETF to look at. The good news is that the top five country weights – the U.K., Japan, Canada, Switzerland and Australia – are not Euro Zone nations. The bad news is over 18% of the ETF's sector goes to financials.

Russell 2000 Low Beta ETF (NYSE: <a class="ticker" href="/stock/slbt#NYSE">SLBT</a>)
Another new volatility play from Russell Investments, SLBT holds over 370 stocks and is designed to give investors exposure to the lowest beta members of the Russell 2000 Index. As such, SLBT's beta against the Russell 3000 is just 0.87.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)
Just over two months old, EEMV has proven to be one of the more successful new EM ETFs to come to market this year having hauled in almost $30 million in AUM. The expense ratio is favorable at 0.25%, but an almost 21% allocation to financials might not be for all investors. While EEMV is a "low vol" play, it's similar to many multi-country EM ETFs in that Taiwan, China and Brazil figure prominently in the country mix. In this case, that trio gets over 41% of EEMV's weight.

iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)
Maybe you just need more. More countries and more stocks that is. ACWV is home to 280 stocks. The country allocations are divided among non-Europe developed markets and Asian emerging markets, but be advised the U.S. gets an allocation of over 49%.

PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)
Let's illustrate how successful SPLV has been among new ETFs in 2011. When wrote about this ETF on October 20, it had just over $432 million in AUM. Today, the PowerShares Web site says the ETF has $819.2 million in AUM. SPLV could be your grandfather's favorite ETF. A low expense ratio at 0.25% and utilities and staples combining for 62% of the ETF's weight make it a conservative investor's dream.

PowerShares S&amp;P 500 High Beta ETF (NYSE: <a class="ticker" href="/stock/sphb#NYSE">SPHB</a>)
SPLV has a "high vol" cousin in the form of the PowerShares S&amp;P 500 High Beta ETF. With $29.2 million in AUM, SPHB can't tough its low volatility in terms of size, but that's a decent total for a new ETF. An almost 34% weight to financials means that group will have to get its act together to make 2012 a profitable one for SPHB.

Russell 2000 High Volatility ETF (NYSE: SHVY)
The Russell 2000 High Volatility ETF fits the bill as a good for traders looking to position themselves for a rebound in small-caps. HVY is home to almost 380 stocks and features large weights to financials, technology, consumer discretionary and health care names.

Russell 1000 High Volatility ETF (NYSE: HVOL)
Or perhaps you prefer the comfort of large caps to go along with your high-beta ETF. We recommend the Russell 1000 High Volatility ETF. We'd like the ETF even more if a third of its sector weight was NOT devoted to financials. At least the energy and tech holdings are familiar and high quality.

iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)
EFAV is just over two months old, but there are signs this ETF will be around a long time. Longer-term investors can enjoy the 0.2% expense ratio. Diversification advocates will like the fact that EFAV has double-digit weights to six sectors. Just be advised that five Euro Zone countries account for about 16% of the new ETF's country weight.

Russell 1000 High Beta ETF (NYSE: <a class="ticker" href="/stock/hbta#NYSE">HBTA</a>)
Yes, "high beta" is in this ETF's name, but when you dig deeper into it's holdings, this ETF is more brisk jog than skydiving. Most of HBTA's holdings are of the blue chip variety, so this ETF actually has wider appeal than its name implies.

Previews

HBTA

SLBT

SPHB

Twelve For '12: Volatility ETFs to Watch In The New Year

New product introductions totaled 275 in the first ten months of 2011.  October saw 27 new ETPs come to market, consisting of 17 ETFs and 10 ETNs.  Three ETFs closed and liquidated, putting the net gain in listed products at 24 for October.  The quantity of U.S. listings now stands at 1,359 (1,163 ETFs and 196 ETNs).  There were two closures and one launch among the actively managed ETF subset.  The current count of actively managed funds is just 39, representing less than 3% of the ETP population.
The surge in stock prices brought assets back to $1.1 trillion, with <a href="http://investwithanedge.com/etf-stats-for-september-2011-assets-slip-below-1-trillion" target="_blank">September now being the only month this year where assets failed to hold above the trillion-dollar mark</a>.  Trading activity declined nearly 5% for the month, which is not at all encouraging in a month of huge price gains.  Dollar volume averaged just $92.5 billion per day.
The number of ETFs averaging more than $1 billion in daily trading activity (the Billion Dollar Club) slipped from 20 to 18 and accounted for more than 70% of all ETP dollars traded.  Products averaging more than $100 million of trading per day increased slightly from 86 to 89 and accounted for 92.2% of dollar volume.

<table class="wptable rowstyle-alt" id="wptable-112" cellspacing="1" cellpadding="2">
<thead>
<tr>
<th class="sortable" style="width:250px" align="left">October 2011 Month End</th>
<th class="sortable" style="width:70px" align="center">ETFs</th>
<th class="sortable" style="width:70px" align="center">ETNs</th>
<th class="sortable" style="width:70px" align="center">Total</th>
</tr>
</thead>
<tr>
<td style="width:250px" align="left">Currently Listed U.S.</td>
<td style="width:70px" align="center">1,163</td>
<td style="width:70px" align="center">196</td>
<td style="width:70px" align="center">1,359</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">Listed as of 12/31/2010</td>
<td style="width:70px" align="center">967</td>
<td style="width:70px" align="center">132</td>
<td style="width:70px" align="center">1,099</td>
</tr>
<tr>
<td style="width:250px" align="left">New Introductions for Month</td>
<td style="width:70px" align="center">17</td>
<td style="width:70px" align="center">10</td>
<td style="width:70px" align="center">27</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">Delistings/Closures for Month</td>
<td style="width:70px" align="center">3</td>
<td style="width:70px" align="center">0</td>
<td style="width:70px" align="center">3</td>
</tr>
<tr>
<td style="width:250px" align="left">Net Change for Month</td>
<td style="width:70px" align="center">+14</td>
<td style="width:70px" align="center">+10</td>
<td style="width:70px" align="center">+24</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">New Introductions 6 mths</td>
<td style="width:70px" align="center">119</td>
<td style="width:70px" align="center">39</td>
<td style="width:70px" align="center">158</td>
</tr>
<tr>
<td style="width:250px" align="left">New Introductions YTD</td>
<td style="width:70px" align="center">205</td>
<td style="width:70px" align="center">70</td>
<td style="width:70px" align="center">275</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">Delistings/Closures YTD</td>
<td style="width:70px" align="center">9</td>
<td style="width:70px" align="center">6</td>
<td style="width:70px" align="center">15</td>
</tr>
<tr>
<td style="width:250px" align="left">Net Change YTD</td>
<td style="width:70px" align="center">+196</td>
<td style="width:70px" align="center">+64</td>
<td style="width:70px" align="center">+260</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">Actively-Managed Listings</td>
<td style="width:70px" align="center">39</td>
<td style="width:70px" align="center">0</td>
<td style="width:70px" align="center">39</td>
</tr>
<tr>
<td style="width:250px" align="left">Assets Under Mgmt ($ billion)</td>
<td style="width:70px" align="center">$1,066</td>
<td style="width:70px" align="center">$15.0</td>
<td style="width:70px" align="center">$1,081</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">% Change in Assets for Month</td>
<td style="width:70px" align="center">+11.3%</td>
<td style="width:70px" align="center">+3.4%</td>
<td style="width:70px" align="center">+11.1%</td>
</tr>
<tr>
<td style="width:250px" align="left">Monthly $ Volume ($ billion)</td>
<td style="width:70px" align="center">$1,907</td>
<td style="width:70px" align="center">$36.4</td>
<td style="width:70px" align="center">$1,943</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">% Change in Monthly $ Volume</td>
<td style="width:70px" align="center">-4.5%</td>
<td style="width:70px" align="center">-23.2%</td>
<td style="width:70px" align="center">-4.9%</td>
</tr>
<tr>
<td style="width:250px" align="left">Avg Daily $ Volume > $1 Billion</td>
<td style="width:70px" align="center">17</td>
<td style="width:70px" align="center">1</td>
<td style="width:70px" align="center">18</td>
</tr>
<tr class="alt">
<td style="width:250px" align="left">Avg Daily $ Volume > $100 Million</td>
<td style="width:70px" align="center">87</td>
<td style="width:70px" align="center">2</td>
<td style="width:70px" align="center">89</td>
</tr>
<tr>
<td style="width:250px" align="left">Avg Daily $ Volume > $10 Million</td>
<td style="width:70px" align="center">246</td>
<td style="width:70px" align="center">11</td>
<td style="width:70px" align="center">257</td>
</tr>
</table>

 Data sources:  AUM from National Stock Exchange, daily prices and volume of individual ETPs from Norgate Premium Data, fund counts and all other information compiled by Invest With An Edge.
New products launched in October (in chronological order), along with links to my initial analysis of each:
<ol>
<li>CurrencyShares Chinese Renminbi Trust (<a class="ticker" href="/stock/fxch#">FXCH</a>) [<a href="http://investwithanedge.com/a-dozen-new-etfs-in-the-first-dozen-days-of-october" target="_blank">A Dozen New ETFs in the First Dozen Days of October</a>]</li>
<li>ProShares Ultra VIX Short-Term Futures ETF (<a class="ticker" href="/stock/uvxy#">UVXY</a>)</li>
<li>ProShares Short VIX Short-Term Futures ETF (SVXY)</li>
<li>AdvisorShares TrimTabs Float Shrink ETF (TTFS)</li>
<li>Russell Small Cap Aggressive Growth ETF (<a class="ticker" href="/stock/sggg#">SGGG</a>)</li>
<li>Russell Small Cap Consistent Growth ETF (<a class="ticker" href="/stock/scog#">SCOG</a>)</li>
<li>Russell Small Cap Contrarian ETF (<a class="ticker" href="/stock/sctr#">SCTR</a>)</li>
<li>Russell Small Cap Low P/E ETF (<a class="ticker" href="/stock/sclp#">SCLP</a>)</li>
<li>UBS ETRACS Monthly 2x Leveraged ISE Cloud Computing TR Index ETN (LSKY)</li>
<li>ProShares Ultra DJ-UBS Natural Gas (BOIL)</li>
<li>ProShares UltraShort DJ-UBS Natural Gas (KOLD)</li>
<li>Market Vectors Renminbi Bond ETF (CHLC)</li>
<li>VelocityShares 3x Long Gold ETN (UGLD) [<a href="http://investwithanedge.com/velocityshares-launches-eight-precious-metals-etns" target="_blank">VelocityShares Launches Eight Precious Metals ETNs</a>]</li>
<li>VelocityShares 3x Inverse Gold ETN (DGLD)</li>
<li>VelocityShares 3x Long Silver ETN (USLV)</li>
<li>VelocityShares 3x Inverse Silver (DSLV)</li>
<li>VelocityShares 2x Long Palladium ETN (LPAL)</li>
<li>VelocityShares 2x Inverse Palladium ETN (IPAL)</li>
<li>VelocityShares 2x Long Platinum ETN (LPLT)</li>
<li>VelocityShares 2x Inverse Platinum ETN (IPLT)</li>
<li>iShares Emerging Markets Local Currency Bond Fund (<a class="ticker" href="/stock/lemb#">LEMB</a>) [<a href="http://investwithanedge.com/lemb-joins-crowded-emerging-markets-local-currency-niche" target="_blank">LEMB Joins Crowded Emerging Markets Local Currency Niche</a>]</li>
<li>iShares MSCI USA Minimum Volatility Index Fund (USMV) [<a href="http://investwithanedge.com/new-ishares-low-volatility-suite" target="_blank">New iShares Low Volatility Suite</a>]</li>
<li>iShares MSCI EAFE Minimum Volatility Index Fund (<a class="ticker" href="/stock/efav#">EFAV</a>)</li>
<li>iShares MSCI All Country World Minimum Volatility Index Fund (<a class="ticker" href="/stock/acwv#">ACWV</a>)</li>
<li>iShares MSCI Emerging Markets Minimum Volatility Index Fund (<a class="ticker" href="/stock/eemv#">EEMV</a>)</li>
<li>Schwab US Dividend Equity ETF (SCHD) [<a href="http://investwithanedge.com/schwab-grabs-lowest-cost-dividend-etf-crown" target="_blank">Schwab Grabs Lowest Cost Dividend ETF Crown</a>]</li>
<li>RBS Global Big Pharma ETN (DRGS) [<a href="http://investwithanedge.com/rbs-launches-questionable-pharma-etp" target="_blank">RBS Launches Questionable Pharma ETP</a>]</li>
</ol>
Product closures/delistings in October:
<ol>
<li>PowerShares Active AlphaQ (<a class="ticker" href="/stock/pqy#">PQY</a>) [<a href="http://investwithanedge.com/active-etfs-continue-to-struggle-pqz-and-pqy-close" target="_blank">Active ETFs Continue to Struggle: PQZ and PQY Close</a>]</li>
<li>PowerShares Active Alpha Multi-Cap (<a class="ticker" href="/stock/pqz#">PQZ</a>)</li>
<li>Direxion Airline Shares (<a class="ticker" href="/stock/flyx#">FLYX</a>) [<a href="http://investwithanedge.com/flyx-fails-to-fly" target="_blank">FLYX Fails to Fly</a>]</li>
</ol>
Product changes in October:
<ol>
<li>ProShares Ultra Silver (<a class="ticker" href="/stock/agq#">AGQ</a>) had a 2-for-1 split effective 10/13/11.</li>
<li>ProShares UltraShort Yen (<a class="ticker" href="/stock/ycs#">YCS</a>), ProShares UltraShort Real Estate (<a class="ticker" href="/stock/srs#">SRS</a>), and ProShares UltraShort Utilities (<a class="ticker" href="/stock/sdp#">SDP</a>) had 1-for-3 reverse splits effective 10/13/11.</li>
<li>WisdomTree Dreyfus Euro Fund <a href="http://www.wisdomtree.com/etfs/fund-details-fixed-income.asp?etfid=61" target="_blank">changed its objective and its name</a> to WisdomTree Euro Debt Fund (<a class="ticker" href="/stock/eu#">EU</a>) effective 10/19/11.</li>
<li>Five SPDR ETFs formerly based on KBW indexes <a href="https://www.spdrs.com/resources/news/article.seam?newsId=1893134650" target="_blank">changed to S&amp;P Select Industry indexes effective 10/24/11</a>.  The new fund names are SPDR S&amp;P Bank ETF (<a class="ticker" href="/stock/kbe#">KBE</a>), SPDR S&amp;P Capital Markets ETF (<a class="ticker" href="/stock/kce#">KCE</a>), SPDR S&amp;P Insurance ETF (<a class="ticker" href="/stock/kie#">KIE</a>), SPDR S&amp;P Mortgage Finance ETF (<a class="ticker" href="/stock/kme#">KME</a>), and SPDR S&amp;P Regional Banking ETF (<a class="ticker" href="/stock/kre#">KRE</a>).</li>
<li>WisdomTree Dreyfus New Zealand Dollar Fund (<a class="ticker" href="/stock/bnz#">BNZ</a>) <a href="http://www.wisdomtree.com/about/pdf/WisdomTree-AUNZ-Debt-Fund-Now-Trading-786.pdf" target="_blank">changed its objective, name, and ticker symbol</a> to WisdomTree Australia &amp; New Zealand Debt Fund (<a class="ticker" href="/stock/aunz#">AUNZ</a>) effective 10/25/11.  The fund had a <a href="http://www.wisdomtree.com/about/pdf/WisdomTree-BNZ-Declare-Distributions-785.pdf" target="_blank">special distribution of $3.05</a> prior to the change.</li>
<li>QuantShares U.S. Market Neutral Beta Fund (BTAH) changed its name to QuantShares U.S. Market Neutral High Beta Fund (BTAH) effective 10/26/11.</li>
<li>EGShares Emerging Markets High Income Low Beta ETF (<a class="ticker" href="/stock/hilo#">HILO</a>) changed its name to EGShares Low Volatility Emerging Markets Dividend ETF (<a class="ticker" href="/stock/hilo#">HILO</a>) effective 10/28/11.</li>
</ol>
Announced Product Changes for Coming Months:
<ol>
<li>Direxion plans to reverse split six ETFs effective 11/10/11.  The affected funds are FAS, EDC, TMV, DRV, and LBJ at 1-for-5 and RUSL at 1-for-3.  <a href="http://www.direxionshares.com/pdfs/DirexionPressReleaseETFNovemberReverseSplits.pdf" target="_blank">Press release</a> (pdf). </li>
<li>All <a href="http://www.direxionshares.com/2xto3x" target="_blank">Direxion Shares 2x Bull and Bear ETFs will convert to 3x</a> on 12/1/11</li>
<li>Van Eck Global and Merrill Lynch <a href="http://www.vaneck.com/holdrs/press-release" target="_blank">announced</a> an agreement to seek SEC and shareholder approval for a <a href="http://www.vaneck.com/holdrs/overview/" target="_blank">fourth quarter 2011 exchange of six HOLDRS products into similar to-be-released Market Vector ETFs</a> under the same ticker symbols.  The new funds will be Market Vectors Oil Services ETF (<a class="ticker" href="/stock/oih#">OIH</a>), Market Vectors Semiconductor ETF (<a class="ticker" href="/stock/smh#">SMH</a>), Market Vectors Pharmaceutical ETF (<a class="ticker" href="/stock/pph#">PPH</a>), Market Vectors Biotech ETF (<a class="ticker" href="/stock/bbh#">BBH</a>), Market Vectors Retail ETF (<a class="ticker" href="/stock/rth#">RTH</a>), and Market Vectors Bank and Brokerage ETF (<a class="ticker" href="/stock/rkh#">RKH</a>).</li>
</ol>
Previous monthly ETF statistics reports are available <a href="http://investwithanedge.com/category/etf-statistics" target="_blank">here</a>.
Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.
<img src="http://investwithanedge.com/?ak_action=api_record_view&amp;id=14648&amp;type=feed" alt="" />

AUNZ

Wisdom tree Drefus New Zeland Dollar Fund

FLYX

FXCH

LEMB

Merrill Lynch Pharmaceutical HOLDRs Trust

Merrill Lynch Retail HOLDRS Trust due 12/31/41

SCLP

SCOG

SCTR

SGGG

UVXY

ETF Stats for October 2011: YTD Launches At 275

BlackRock's iShares unit, the world's largest ETF sponsor, plans to add to that size on Thursday Oct. 20 by unveiling five new ETFs. Among those new ETFs will be the iShares Emerging Markets Local Currency Bond Fund, which will follow a Barclays Capital index comprised of 270 bond issues from 18 countries. 

As of September 30, 2011, the Underlying Index included securities issued by Brazil, Chile, Colombia, the Czech Republic, Egypt, Hungary, Indonesia, Israel, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Thailand and Turkey. The new ETF will trade on the New York Stock Exchange under the ticker “LEMB” with an expense ratio of 0.6%.

The iShares MSCI USA Minimum Volatility Index Fund (NYSE: USMV) will also make its debut on Thursday. USMV will track the MSCI USA Minimum Volatility Index using a minimum variance strategy on large- and mid-cap stocks. The new ETF will have an expense ratio of 0.15%. USMV's underlying index had 126 constituents as of Sept. 1.

USMV will have a developed markets equivalent, the MSCI EAFE Minimum Volatility Index (NYSE: EFAV). The new ETF will track the MSCI EAFE Minimum Volatility Index, which offers exposure to 22 developed markets excluding the U.S. and Canada. 

EFAV will have an expense ratio of 0.2% and track consumer staples, financials and health care companies from Australia, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland and the U.K.

An all-world approach to the minimum volatility will be taken with the iShares MSCI All Country World Minimum Volatility Index (NYSE: ACWV). That fund will offer exposure to consumer staples, financials and health care companies from Australia, Belgium, Canada, Chile, China, the Czech Republic, Denmark, Egypt, Finland, France, Hong Kong, Indonesia, Israel, Italy, Japan, Malaysia, Morocco, the Philippines, Singapore, Spain, Switzerland, Taiwan, Thailand, the United Kingdom and the United States with expense ratio of 0.35%.

Of course there will be an emerging markets equivalent with the iShares MSCI Emerging Markets Minimum Volatility (NYSE: EEMV). That fund will feature holdings in consumer staples, financials and telecommunication services companies from 21 countries including Brazil, Chile, China, Colombia, the Czech Republic, Egypt, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan and Thailand. EEMV will have an expense ratio of 0.25%.