There’s enough market volatility to go around as rising inflation and U.S. Federal Reserve rate hikes continue to keep investors on their heels. Staying invested can be difficult, but it could be made easier with low volatility and quality.
Of course, even more important than that is keeping emotions under control. It’s certainly easier said than done when inflation fears and recession forecasts are causing the major stock market indexes to fluctuate wildly.
“The best thing you could do is to control your own internals: how you react to stress, lessons you learn along your investing journey, and becoming battle-hardened so you could become a long-term investor,” said financial advisor Mitch Goldberg, president of ClientFirst Strategy in Melville, New York.
“Remember, time in the market is more important than timing the market,” Goldberg added.
Get Quality Combined With Low Volatility
Staying invested in the market means getting quality exposure that minimizes volatility. All of that can be achieved using the FlexShares US Quality Low Volatility Index Fund (QLV ).
QLV tracks a proprietary index of U.S. companies that aims for a portfolio that skews towards quality and reduced volatility. The index methodology first assesses financial strength and stability based on quality metrics like profitability, management efficiency, and cash flow. The lowest-scoring companies are excluded.
QLV seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Low Volatility Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to the Northern Trust 1250 Index, a float-adjusted market capitalization-weighted index of U.S.-domiciled large- and mid-capitalization companies.
“The FlexShares US Quality Low Volatility Index Fund (QLV) is designed to provide exposure to US-based companies that possess lower overall absolute volatility and that also exhibit financial strength and stability, which we believe are quality characteristics,” a FlexShares Fund Focus says.
For more news, information, and strategy, visit the Multi-Asset Channel.