2 Winning Approaches During Volatile Times
These low-volatility funds practice very different strategies yet hold up well during market downturns.
Alex Bryan: The market has certainly exhibited a lot of volatility over the past year. Stock investors looking for a smoother ride and better downside protection than traditional index funds might consider a low-volatility stock fund. Well-constructed, low-cost funds like Invesco S&P 500 Low Volatility ETF and iShares Edge MSCI Minimum Volatility USA ETF should offer a better risk/reward trade-off than the market over the long term. These funds take very different approaches to reduce volatility, but they are both pretty effective.
Alex Bryan has a position in the following securities mentioned above: USMV. Find out about Morningstar’s editorial policies.