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>>> The 3 Best Low Volatility ETFs


Optimized Portfolio


https://www.optimizedportfolio.com/best-low-volatility-etfs/


Below are the 3 best low volatility ETFs for conservative investors to participate in stock returns while limiting downside risk.


USMV – iShares MSCI USA Min Vol Factor ETF

The iShares MSCI USA Min Vol Factor ETF (USMV) is the most popular fund in this space with over $34 billion in assets. This ETF is unique in that it uses a special algorithmic optimization to hold a basket of low-volatility stocks in aggregate while also attempting to keep factor and sector exposure diversified. The fund seeks to track the MSCI USA Minimum Volatility Index. It has over 194 holdings and an expense ratio of 0.15%.


SPLV – Invesco S&P 500 Low Volatility ETF

The Invesco S&P 500 Low Volatility ETF (SPLV) holds the 100 least volatile stocks of the S&P 500 that comprise the S&P 500 Low Volatility Index. Compared to USMV above, SPLV provides a basket of individual low-volatility stocks as opposed to a low-volatility portfolio in aggregate. SPLV does not run any sort of optimization like USMV does. As such, SPLV’s holdings and sector exposure are considerably different than those of USMV. Historically, USMV has delivered greater returns and lower volatility than SPLV. SPLV has over $8 billion in assets and an expense ratio of 0.25%.


EFAV – iShares Edge MSCI Min Vol EAFE ETF

Those seeking international exposure can use the iShares Edge MSCI Min Vol EAFE ETF (EFAV) to capture low volatility stocks in developed markets outside of North America. The fund seeks to track the MSCI EAFE Minimum Volatility Index. It has over $10 billion in assets and an expense ratio of 0.20%.

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