Minimum/Low Volatility

Why invest in Minimum or Low Volatility

Low volatility or Minimum Volatility stock by nature exhibit lower fluctuation on price . usually these stocks are comprised of staples and other lower risk  companies , not surprisingly they could be companies with lower price to book ratios. These kind of companies have shown Minimum variance anomaly. According to this theory, the low volatility stocks while being lower in risk have outperformed their riskier peers.

 

 

Top 2 US ETF’s by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM* Year of Inception Expense Ratio
iShares Edge MSCI Min Vol USA       USMV  10/18/2011 0.15%
 PowerShares S&P 500 Low Volatility    SPLV  05/05/2011  0.25%

 

Top 3 International ETF’s by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM* Year of Inception Expense Ratio
  iShares Edge MSCI Min Vol EAFE   EFAV 10/18/2011 0.20%
 iShares Edge MSCI Min Vol Emerg Mkts  EEMV  10/18/2011  0.25%
 iShares Edge MSCI Min Vol Global  ACWV 10/18/2011  0.20%

 

 

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