Stocks with low volatility tend to yield an excess return compared to the risk taken. This research-based observation is referred to as the low-volatility factor.
There are various possible explanations for this: For example, shares with low volatility may be perceived as less rewarding by investors as they are associated with less risk. Another theory suggests that investors generally overestimate their ability to forecast. For particularly volatile stocks, there is a greater disagreement between investors, which should lead to higher volatility and lower returns.
This factor strategy can also be implemented by means of an index. In this investment guide, you will find all available worldwide low volatility ETFs. Currently, there are 8 ETFs available.
When choosing a low-volatility ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all low-volatility ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
Compare all low-volatility ETFs in detail Compare all low-volatility ETFs in a chart
Provider ISIN
Fund size in m EUR
TER in %
Use of profits
Fund domicile
Replication method
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc)IE00B8FHGS14
The table shows the returns of all low-volatility ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
The largest Low Volatility ETF is the iShares MSCI USA Min Vol Factor ETF USMV with $23.41B in assets. In the last trailing year, the best-performing Low Volatility ETF was FDLO at 12.61%. The most recent ETF launched in the Low Volatility space was the THOR Low Volatility ETF THLV on 09/12/22.
Low-risk ETFs like Invesco S&P 500 High Dividend Low Volatility ETF SPHD, Simplify Tail Risk Strategy ETF CYA, Cambria Tail Risk ETF TAIL and AGF U.S. Market Neutral Anti-Beta Fund BTAL could be compelling choices. These ETFs are designed for investors who prioritize capital preservation over high returns.
The S&P 500 ETF comes highly recommended by Warren Buffett, and for good reason. Not only is it safer than many other investments, but it also has a long history of earning positive returns.
Vanguard Global Minimum Volatility Fund seeks to provide long-term capital appreciation with lower volatility relative to the global equity market by primarily investing in U.S. and foreign stocks that are expected to generate lower volatility relative to the global equity market.
SPHD and SCHD are both exchange-traded funds that focus on dividend stocks. However, there are a few key differences for investors to keep in mind. For example, SPHD focuses on low volatility stocks with high dividend yields, while SCHD focuses on stocks of companies with a track record of consistent dividend payments.
VTI - Volatility Comparison. Vanguard S&P 500 ETF (VOO) and Vanguard Total Stock Market ETF (VTI) have volatilities of 3.92% and 4.01%, respectively, indicating that both stocks experience similar levels of price fluctuations.
One way to take advantage of low volatility is to find stocks and sectors that are moving more than the wider market. For example, changes in management, corporate actions and earnings announcements can cause volatility for individual companies.
CDs are great for people looking to invest their money for a few months or years or build very low-risk portfolios. In general, though, investing in an ETF will offer higher returns in the long run.
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.83B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 14.42%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.
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