ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • 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 Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Volatility Resource Channel
  2. A Look at LVHD’s 2022 Leadership
Volatility Resource Channel
Share

A Look at LVHD's 2022 Leadership

Tom LydonSep 08, 2022
2022-09-08

Low-volatility stocks are outperforming the broader market this year. Same goes for high-dividend equities. Put both factors together, and investors can get some real potency.

Take the case of the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD A). As its name implies, the exchange traded fund taps into both factors, meaning it’s not surprising that LVHD is resoundingly beating the broader market in 2022. Though not perfect, as highlighted by a 3.7% year-to-date decline, LVHD is beating the S&P 500 by a staggering 1,200 basis points this year.

Add to that, LVHD is beating the S&P 500 Low Volatility Index by 120 basis points. Following a rough month for stocks in August and September’s reputation as the worst month of the year for equities, the Franklin Templeton fund is relevant over the near term.

“That uptick combined with an uncertain environment for the global economy have led many Wall Street pros to predict that volatility is here to stay. Angelo Kourkafas, investment strategist at Edward Jones, said the Federal Reserve’s fight against inflation, the energy crisis facing Europe and China’s choppy recovery from the Covid-19 pandemic are chief reasons that could drive continued volatility in the months ahead,” reported Jesse Pound for CNBC.

The $618.41 million LVHD is home to 98 stocks, some of which also appear in other low-volatility ETFs. Owing to the strategy’s volatility-reducing objective, it’s common for these ETFs to feature large weights to utilities stocks, and that’s the case with LVHD, as it devotes 22.69% of its weight to that sector.

LVHD utilities holdings such as Consolidated Edison (NYSE:ED), Eversource Energy (NYSE:ES), and WEC Energy Group (NYSE:WEC), among others, are also members of other low-vol ETFs. Speaking of staples, LVHD allocates 20.32% of its weight to the consumer staples sector — another group that’s a hallmark of low-vol and high-dividend ETFs.

Colgate-Palmolive (NYSE:CL) and Kellogg (NYSE:K) are among LVHD’s consumer staples holdings that are holding up well at a turbulent time for broader markets.

“Kellogg which has jumped nearly 14% year to date. It announced plans in June to split into three separate companies by the end of next year,” according to CNBC.

Pepsico (NASDAQ:PEP), another LVHD holding that also dwells in plenty of other comparable ETFs, is contributing to the ETF’s 2022 durability, as that stock is basically flat on the year.

For more news, information, and strategy, visit the Volatility Resource Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

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