(September 2020)

Markets have been very bumpy lately, and many think the topsy-turvy nature of stocks will continue until the election. Therefore, investors may want some protection from the volatility. With that in mind there is a breed of ETFs that specialize in exactly that. Many different providers offer such ETFs and there are different methodologies for doing so. One of the most common and effective is simply to track an index of the stocks with the lowest volatility over a set time period, for example the preceding twelve months. Some of the funds in this area include State Street’s SPDR Large Cap Low Volatility Index ETF, the Invesco S&P Low Volatility ETF, and the iShares Edge MSCI USA Min Vol Factor ETF.

(New York)


FINSUM + Magnifi: September has historically been the worst month for stocks, with shares losing an average of 1% in the month. Given a highly unpredictable campaign and election looming, it could very well continue for some time.

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