The Low Volatility ETFdb Portfolio is now available to ETFdb Pro members and with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 30 all-ETF model portfolios available at ETFdb.com. The new portfolio consists of a traditional asset allocation strategy, but makes use of innovative exchange-traded products that allow for targeted exposure within both stock and bond markets.
The Low Volatility ETFdb Portfolio is not simply a collection of non-volatile asset classes such as money market-like ETFs. Rather, this ETFdb Portfolio still maintains exposure to risky asset classes, including a hefty weight to both domestic and international stocks. Within each of these asset classes, selection of component securities was completed with the goal of minimizing volatility, which translates into smaller price fluctuations in both directions.
Given this strategy, this ETFdb portfolio could be useful for investors looking to scale back the potential for downside losses while still maintaining considerable upside potential. The equity side of the portfolio consists of both U.S. and international equities, but makes use of ETFs that employ unique methodologies to target securities that have historically exhibited relatively low volatility. The fixed income side of the portfolio includes allocations to various corners of the U.S. bond market, including Treasuries, investment grade corporate securities, and junk bonds. But the ETFs selected to fill these asset class are not the “plain vanilla” funds that offer broad-based exposure; rather, this portfolio utilizes specialized products that should deliver below-average volatility over the long-term.
There are now more than 30 ETFdb portfolios available with an ETFdb Pro membership; backtested results for each can be seen on the ETFdb Portfolios page, and complete access–including overview of each component, risk continuum, and correlation analysis–is available with a free trial to ETFdb Pro.
Disclosure: No positions at time of writing.