Invesco S&P 500 Low Volatility ETF Rated Best Among This Week’s Smart Beta ETFs To Diversify During COVID Times

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This week we’re taking a look at some of the top US Low Volatility Smart Beta ETFs. It couldn’t have come at a more opportune time. While the major indices had a solid week last week, and many fears about the Fed’s potential tapering were relieved after Fed Chair Jay Powell spoke on Friday. But there are many negative catalysts for the market right now, and it feels like the market is truly a house of cards. There’s a chance that growth may have peaked, along with the broader market. Combined with inflation which isn’t going away anytime soon, you have the potential for some severe swings soon. That’s why adding exposure to ETFs holding assets that experience lower volatility is a must at this time. Q.ai’s deep learning algorithms have identified several US Low Volatility Smart Beta ETFs based on fund flows over the last 90-days, 30-days, and 7-days. We have recognized 1 ETF rated as “Best,” 1 rated as “Good,” 4 rated as “Caution,” 2 rated as “Poor,” and 1 rated as “Worst.”

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Best

Invesco S&P 500 Low Volatility ETF (XSLV)

Our BEST rated ETF this week is the Invesco S&P 500 Low Volatility ETF. This ETF is compiled, maintained and calculated by the S&P and consists of 120 out of 600 small-cap stocks from the S&P SmallCap 600 Index with the lowest realized volatility over the past 12 months. The ETF is small-sized as well, with $7,823,341,587.60 AUM. It has seen consistent fund flows, with a 90 fund flow of $3,014,289,179.80, a 30-day fund flow of $1,297,810,262.50, and a 1-week fund flow of $2,106,554.60. Its net expense ratio of 0.25% is decent.

MORE FROM FORBESInvesco S&P SmallCap Low Volatility ETF (XSLV)

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Good

Invesco Russell 1000 Low Beta Equal Weight ETF (USLB)

Our GOOD rated ETF this week is the Invesco Russell 1000 Low Beta Equal Weight ETF. This ETF tracks the performance of stocks in the Russell 1000 exhibiting low beta characteristics. The ETF is on the smaller side with $9,518,480.57 AUM. It has seen consistent fund flows, with a 90 fund flow of $24,308,298.00, a 30-day fund flow of $24,308,298.00, and a 1-week fund flow of $24,308,298.00. Its net expense ratio of 0.35% is middle of the pack on this week’s list.

MORE FROM FORBESInvesco Russell 1000 Low Beta Equal Weight ETF (USLB)

Caution

Invesco S&P 500 Low Volatility ETF (SPLV)

The Invesco S&P 500 Low Volatility ETF is our first ETF rated CAUTION. This ETF aims to provide investors with an index of low volatility S&P 500 stocks. Invesco chooses 100 securities from the S&P 500 that have experienced the lowest volatility over the past 12 months. The ETF is on the smaller side with $1,237,895,588.70. It has seen mostly positive fund flows, with a 90-day fund flow of $161,979,520.10, 30-day fund flow of $79,442,150.40, and 1-week fund flow of $0.00. The ETF also has a decent net expense ratio of 0.25%.

MORE FROM FORBESInvesco S&P 500 Low Volatility ETF (SPLV)

Invesco S&P MidCap Low Volatility ETF (XMLV)

The Invesco S&P MidCap Low Volatility ETF is our second CAUTION-rated ETF this week. This ETF consists of 80 out of 400 mid-cap stocks from the S&P MidCap 400 Index with the lowest realized volatility over the past 12 months. With $1,601,079,370.80 AUM, it is a smaller-sized ETF. Its fund flows have been mixed with a 90-day fund flow of $300,335,484.30, 30-day fund flow of $156,578,787.70, and 1-week fund flow of -$8,218,914.50. It has a decent net expense ratio of 0.25%.

MORE FROM FORBESInvesco S&P MidCap Low Volatility ETF (XMLV)

VictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)

The next ETF on our list of CAUTION-rated ETFs is the VictoryShares US 500 Enhanced Volatility Wtd ETF. This ETF combines fundamental criteria and volatility weighting in an effort to outperform traditional cap-weighted indexing strategies. It offers broad exposure to large-cap U.S. stocks that have at least four consecutive quarters of net positive earnings, while offering a balanced approach that manages risk by automatically reducing exposure to stocks during periods of significant market declines. The ETF is one of the smallest ones this week with $890,581,170.00 AUM. It has also seen positive fund flows, with a 90-day fund flow of $28,759,220.00, 30-day fund flow of $7,440,250.00, and 1-week fund flow of $7,440,250.00. Its net expense ratio of 0.35% is middle of the road, but pricier than many on this week’s list.

MORE FROM FORBESVictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)

SPDR Russell 1000 Low Volatility Focus ETF (ONEV)

The SPDR Russell 1000 Low Volatility Focus ETF is our final CAUTION-rated ETF this week. This ETF seeks to provide investment results that generally correspond to the performance of the Russell 1000 Low Volatility Focused Factor Index. It is also the smallest ETF this week in terms of AUM with $528,596,232.39. Its fund flows have been positive, with a 90-day fund flow of $12,142,315.90, a 30-day fund flow of $5,330,832.33, and a 1-week fund flow of $0.00. With a net expense ratio of 0.20%, it is one of the cheapest on our list this week. 

MORE FROM FORBESSPDR Russell 1000 Low Volatility Focus ETF (ONEV)

Poor

iShares Edge MSCI Min Vol USA ETF (USMV)

The first POOR-rated ETF for this week is the iShares Edge MSCI Min Vol USA ETF. The iShares Edge MSCI Min Vol USA ETF aims to track an index composed of U.S. equities that, in the aggregate, have lower volatility characteristics than the broader U.S. equity market. It is the largest ETF on this week’s list in terms of AUM with $28,625,510,693.00. Its fund flows have been negative, with a 90-day fund flow of -$1,475,290,010.00, 30-day fund flow of -$231,284,120.00, and 1-week fund flow of -$31,652,200.00. With a net expense ratio of 0.15%, it is also the most inexpensive on this week’s list.

MORE FROM FORBESiShares Edge MSCI Min Vol USA ETF (USMV)

First Trust Capital Strength ETF (FTCS)

The First Trust Capital Strength ETF is our other POOR-rated ETF this week. The ETF’s goal is to track  “The Capital Strength Index,” or the largest 500 companies from the Nasdaq NDAQ with a minimum three-month average daily dollar trading volume of $5 million. The ETF is smaller-sized with $7,616,864,145.36 AUM. It has seen positive fund flows, with a 90-day fund flow of $2,080,493,500.00, 30-day fund flow of $1,907,999,000.00, and 1-week fund flow of $19,821,500.00. Its net expense ratio is by far the most expensive this week at 0.60%.

MORE FROM FORBESFirst Trust Capital Strength ETF (FTCS)

Worst

SPDR SSGA US Large Cap Low Volatility Index ETF (LGLV)

The SPDR SSGA US Large Cap Low Volatility Index ETF is rated as our WORST ETF for this week. The objective of the ETF is to track an index of the largest 1000 U.S. stocks based on market cap, with weights dependent on which stocks experience the lowest volatility. The ETF is smaller-sized with $565,124,208.87 AUM. It has also seen positive fund flows, with a 90-day fund flow of $4,270,718.43, 30-day fund flow of $5,597,681.95, and 1-week fund flow of $5,624,720.83. Its net expense ratio of 0.12% is one of the more attractive ones this week.  

MORE FROM FORBESSPDR SSGA US Large Cap Low Volatility Index ETF (LGLV)

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