Here are a few low-beta ETFs you can consider in the current economic situation when the markets are experiencing a high level of volatility.
It is always wise to invest in favourably ranked ETFs with beta somewhere between 0 and 1.
iShares Edge MSCI Minimum Volatility USA
This fund tracks the MSCI USA Minimum Volatility (USD) Index. Its diversified portfolio contains 176 securities with just 15% of its assets that have been invested in top 10 holdings. The top position is occupied by Financials at 19.8% with Health Care occupying 19.4% of the fund’s assets. With a beta of 0.69 and a Zacks ETC Rank of #2, the fund is a Medium risk one. It has $14.7 billion AUM (Assets under Management) and over 4 million shares daily average volume. With USMV charging only 15 bps as annual fees, it is much lower than the 0.50% category average. This ETF could gain close to 3.5% in the past one-month period and 10.7% in the past year-to-date period.
iShares Core High Dividend
This fund holds 75 securities, and 58.5% of its assets are invested in top 10 holdings. It tracks the Morningstar Dividend Yield Focus Index and is a Zacks ETF Rank #1 product. Energy holds the top position with 20.5% with Consumer Staples ranking second with 20%. This ETF has a beta of 0.74 and a Medium risk outlook. It boasts $6 billion AUM along with a daily average volume exceeding 500,000 shares. With HDV charging annual fees of only 12 bps, it is much lower than the 0.42% category average. This ETF gained close to 2.3% over the past one-month period and 12% in the past year-to-date period.
Vanguard REIT ETF
The Vanguard REIT ETF follows the MSCI US REIT Index, holding 151 securities, and 35.6% of its assets invested in top 10 holdings. Retail REITs make up the top position with 23.9% of the assets while Specialized REITs are next, occupying 17.5% of the assets. This ETF has a Zacks ETF Rank #2, a beta of 0.80 and a Medium risk outlook. With daily average volume exceeding 4 million shares, and $34.4 billion AUM, the fund is quite the most popular ETF in its sector. In the past one-month period this ETF gained close to 5.4%, and 11.3% in the past year-to-date period.
ETF investing is an appropriate solution for certain market situations. The guidance of an experienced online broker dealer helps in all kinds of online stock trading. At TradeZero we have experience plus sophisticated platforms and software for effective trading. Give us a call at +1 954-944-3885 or send us an email at email@example.com.
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