Low Volatility ETFs

Last Updated: 9/27/2023

It can seem counterintuitive to many investors, but stocks that are less volatile than their counterparts have historically produced comparable or better returns. This means that on a riskadjusted basis, low volatility stocks have been superior investments. We measure low volatility in two ways. The standard deviation measures the volatility of each of the fund's holdings on a standalone basis. Beta also accounts for a stock's correlation with other stocks. The combined score uses both metrics. Since we are measuring low volatility, funds with high scores for this factor will be the least volatile.

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ETFs with Most Low Volatility Factor Exposure

Ticker	ETF Name	Total Assets	Expense Ratio	Total Holdings	Active Share vs. S&P 500	Active Fee	Active Share vs. Russell 2000	Size Exposure	Value Exposure	Quality Exposure	Momentum Exposure	Low Volatility Exposure
FVD	First Trust VL Dividend ETF	$10,973,760,000	0.65%	170	79.90%	0.81%	97.40%	35	65	69	7	99
SPLV	Invesco S&P 500 Low Volatility ETF	$8,185,144,000	0.25%	101	77.85%	0.32%	100.00%	27	49	68	13	99
XRLV	Invesco S&P 500ex-Rate SnsvLwVtl ETF	$44,126,330	0.25%	101	77.86%	0.32%	100.00%	27	51	68	12	99
DURA	VanEck Morningstar Durable Dividend ETF	$87,666,100	0.29%	77	85.78%	0.34%	99.72%	24	65	85	23	98
LGLV	SPDR SSGA US Large Cap Low Volatility Index ETF	$777,574,500	0.12%	152	75.34%	0.16%	99.15%	31	44	83	26	98
USMV	iShares MSCI USA Minimum Volatility Index Fund ETF	$27,451,370,000	0.15%	175	68.28%	0.22%	99.90%	22	40	87	33	98
LVHD	Franklin Low Volatility High Div ETF	$734,339,300	0.27%	91	89.42%	0.30%	97.75%	47	62	82	21	97
DJD	Invesco - Guggenheim Dow Jones Indl Avg Div ETF	$251,808,500	0.07%	28	84.92%	0.08%	100.00%	15	74	73	7	96
FDLO	Fidelity Low Volatility Factor ETF	$440,198,300	0.29%	129	61.82%	0.47%	98.87%	18	27	94	68	96
FTCS	First Trust Capital Strength ETF	$8,500,382,000	0.55%	51	78.59%	0.70%	99.94%	17	38	98	81	96

Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.

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