Objective

The Low Volatility ETF folio was developed for investors seeking lower volatility in return for less than market returns, with a smaller number of securities.

Strategy

The Low Volatility ETF folio consists of ETFs that are significantly less volatile than the overall market. The folio has the goal of achieving about half the volatility of the S&P 500, while still retaining strategic exposure to equities to boost long-term expected return.

The folio can provide an easy hedge during an economic downturn or in periods of significant volatility, with the moderate cost of ETF ownership.

Last Updated: December 9, 2016

Category: Strategy
Inception Date: 2008-02-26 00:00:00.0
Date Funded: 2009-08-31*

Folio S&P 500 Total Return
One-Month 0.23% 4.66%
Three-Month -0.1% 6.76%
Year-to-Date 4.66% 12.86%
One-Year 4.75% 12.76%
Three-Year (Annualized) 2.97% 10.0%
Five-Year (Annualized) 5.01% 14.9%
Since Inception 4.49% N/A
Volatility 5.7% 13.67%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1DVYishares dow jones select dividend index2.00%
2EWJishares msci japan index fund5.00%
3EWLishares msci switzerland index fund4.00%
4EWMishares msci malaysia index fund4.00%
5IXJishares s&p global healthcare sector ind5.00%
6IYHishares dow jones us healthcare sector i4.00%
7IYKishares dow jones us consumer goods sect2.00%
8IYZishares dow jones us telecommunications6.00%
9SHYishares barclays 1-3 year treasury bond20.00%
10TIPishares barclays tips bond fund40.00%
11XLIindustrial select sector spdr fund6.00%
12XLPconsumer staples select sector spdr fund2.00%

Steps to Create This Folio

  1. We combined ETFs into a portfolio with a target risk level equal to half that of the S&P 500.
  2. We calculated historical risk and return projections on these securities.
  3. We then ran a quantitative analysis identifying the optimal allocations to each security while maintaining strategic exposure to equities.

Number of Securities

This folio is comprised of ETFs and the number of securities may vary.

Update Frequency

Quarterly.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.