A low-volatility exchange-traded fund is performing similarly to the tech-heavy Nasdaq Composite this year, and doing so without the stomach-churning price swings that keep investors up at night. The Invesco S & P 500 Low Volatility ETF (SPLV) has advanced close to 13% in 2024, while the Nasdaq Composite is up 13.8%. The ETF also hit an intraday all-time high on Wednesday. SPLV follows the S & P 500 Low Volatility Index, which is based on 100 stocks within the broad market index with the lowest realized volatility over the past 12 months. SPLV YTD mountain Invesco’s S & P 500 Low Volatility ETF (SPLV). Where SPLV’s performance really stands out is during times of market tumult. Outside of the big Aug. 5 global market sell-off — in which the Nasdaq lost 3.4% and the low-volatility ETF dropped 2.2% — SPLV has had just one losing day in the past month. It is also slightly ahead of the tech-heavy index in that period, with a 5.7% gain over the past month, while the Nasdaq is up 5.5%. Top holdings in the ETF include Warren Buffett’s Berkshire Hathaway , Coca-Cola and T-Mobile . Shares of the fund are tradable on several mainstream popular trading platforms including E-Trade from Morgan Stanley and Charles Schwab. The ETF has an expense ratio of 0.25%. The three major averages have been on shaky footing so far in September after ending the previous month with gains. On Tuesday, the S & P 500, Nasdaq and Dow Jones Industrial Average posted their worst session since the early-August slide as a batch of weak manufacturing data spurred investors’ worries over the economy. Elsewhere, the CBOE Volatility Index has ticked up above 20 since September has started, and it surged over 65 during the early-August rout, which was its highest level since 2020. With the 2024 election looming, markets could only be testing the waters of volatility , making the SPLV a potential candidate to ride out the uncertainty.
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