The PDF version of the June issue of ETFInvestor is now available for download.

If the link above doesn’t work, you can download this month's issue by copying this address into your browser: http://etf.morningstar.com/Newsletter.aspx?download=currentIssue

This month’s issue focuses on low-volatility stock strategies.

Low-volatility exchange-traded funds aim to give investors a smoother ride in stock markets. Being long stocks with less risk is a compelling proposition. So it’s little surprise that these funds have been popular. Over the trailing five years through February 2020, investors poured a combined $30.2 billion of their hard-earned savings into U.S. large-cap ETFs that focus on dialing down volatility. This represented 306% organic growth over that three-year stretch. But the early-2020 market meltdown and subsequent rebound have put them to the test, and many investors have gotten spooked. These funds saw $18.1 billion in net outflows from March 2020 through May 2021.

In this month’s cover I look at how low-volatility ETFs performed in the 2020 market downdraft and subsequent recovery, examine the differences among them, and share my thoughts on how investors might use them to manage risk in their portfolios.

Here’s a rundown of what else you’ll find in this month’s issue:     

• This month’s look at the Basic portfolio serves up a reminder that the simplest approach to managing risk may also be the best.
• Spotlights on Invesco S&P 500 Low Volatility ETF SPLV and iShares Edge MSCI Minimum Volatility Emerging Markets ETF EEMV.
• Daniel Sotiroff looks at some of the hidden risks that might be lurking in low-volatility funds.
• Ryan Jackson surveys other stock strategies that might indirectly dampen volatility.

Ben