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
  • 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. Innovative ETFs Channel
  2. SPLV Might Be Ready for Its Moment
Innovative ETFs Channel
Share

SPLV Might Be Ready for Its Moment

Tom LydonNov 04, 2022
2022-11-04

Truth be told, low-volatility exchange traded funds have been enjoying plenty of moments over the course of 2022. The products are living up to their billing, performing less poorly than the broader market while equities struggle while delivering reduced volatility. There could be more good news on the way for ETFs such as the Invesco S&P 500® Low Volatility ETF (SPLV A+), as some market observers are forecasting an increasingly favorable environment for low-volatility ETFs. That’s saying something, because the funds are standing out this year.

“So on one hand, we have this seems like inflation has upper hand. It keep coming in hotter than expected. And if the inflation comes in like that, monetary policy will stay tighter for longer, and basically, it will delay, most importantly the Fed pivot. In that environment, stocks that tend to be highly levered, they tend to have volatile profitability and tend to be expensive, they are underperform,” said TD Asset Management portfolio manager Emin Baghramyan in a recent interview.

SPLV, which tracks the S&P 500 Low Volatility Index, is certainly doing its job this year. As of October 31, the Invesco ETF’s year-to-date loss was just 8.4%, or less than half the 17.7% shed by the S&P 500. Plus, SPLV’s annualized volatility through the first 10 months of 2022 is 700 basis points below that of the S&P 500.

“Low- volatility stocks tend to have the opposite characteristics. They tend to be stable. They tend to have stable profit outlook, not very expensive, and not very leveraged,” added Baghramyan.

Indeed, SPLV sports plenty of stability as the utilities and consumer staples sectors combine for about 45% of the fund’s weight. Healthcare stocks contribute another 15%. Conversely, energy — though performing well this year — has a penchant for turbulence and isn’t currently featured in SPLV.

Additionally, as one might surmise, SPLV could be an ideal consideration for investors with long time horizons who simply don’t want to deal with the turbulence that comes along with risk assets.

“So if we look at over the past 40 years, one could argue that, yeah, low-vol stocks have indeed outperformed by about 1.5% each per year, their benchmark, their peers, the broad market average. And over the past 40 years, we indeed had interest rates declining steadily,” concluded TD’s Baghramyan.

For more news, information, and strategy, visit the Innovative ETFs 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