ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. 2 Active ETFs to Help Shield Against Volatility
Core Strategies Channel
Share

2 Active ETFs to Help Shield Against Volatility

Ben HernandezSep 27, 2023
2023-09-27

The S&P 500 has fallen almost 3% within the past month, highlighting the volatility that typically hits at the end of the summer. For volatility through the end of 2023, investors may want to consider two active ETFs from American Century.

Investors can simply wait for a September slowdown to occur. However, a confluence of factors could lead to further volatility in the equities market. The main market mover continues to be interest rates. This is especially so with inflation sticking around longer than anticipated, which could lead to further rate hikes.

That said, traders may be more optimistic about eventual interest rate cuts. That said, nobody has a crystal ball. If volatility persists, investors can position their portfolios to lessen the blow.

Addressing Volatility Through Large-Cap Value Exposure

One way is to get more large-cap value exposure. As opposed to mid- and small-cap equities, large-cap companies are better equipped fundamentally to withstand heavy volatility.

“Large-cap companies—those with market caps larger than $10 billion and up to more than $1 trillion—are usually companies with established brands and strong balance sheets,” a Forbes Advisor article explained.

“This makes them less volatile than smaller startups that have yet to make a name for themselves or turn a significant profit,” the article added. “Large-cap stocks also have more interest from analysts and the media, allowing investors to make better decisions on whether to buy, sell or hold.”

Given this, ETF investors may also want to focus on large-caps that offer value to also take advantage of upside when markets rally. That said, consider the American Century Focused Large Cap Value ETF (FLV C+).

The fund seeks long-term capital growth and income by investing in a high-conviction portfolio of high-quality, large-cap companies that the managers believe are undervalued. The active management aspect allows the holdings to be adjusted when market conditions suggest changes.


Content continues below advertisement

Turning the Volatility Volume Down

Another way to counter volatility is to address it directly via funds like the +American Century Low Volatility ETF+ (LVOL B-). Also actively managed, LVOL offers  dynamic exposure at a low-cost expense ratio of 0.29%.

The fund screens for asymmetric, or downside, volatility and invests in companies with strong, steady growth. Furthermore, its focus is on strong fundamentals, wherein companies exhibit strong balance sheets with sustainable profit potential.

Its rebalancing strategy also gives LVOL pliability in the market when equities prices fluctuate wildly during heavy volatility. Like FLV, that flexibility is also attributed to its active management component.

For more news, information, and analysis, visit the Core Strategies Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X