This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Low-Volatility ETFs for the Long Term

USMV's better balance made only a slight difference in the last three months as that fund went down 2.2%

As for Barron's saying people with shorter horizons may want to reassess their holding, I would say investors with shorter horizons probably should not own low-volatility funds in the first place.

Indexing or value investing along with many other longer-term strategies cannot be deemed a success or failure based on results for a three- or six-month window. No strategy can be the best for all market conditions.

Year to date, the S&P 500 is up 16%, which is a big move even after a small pullback recently. A fund that seeks out less volatility than the broad market should be expected to lag when the broad market goes up a lot in a short period of time such as the first eight months of 2013.

Low-volatility funds will be more appropriate for investors more suited to a long-term perspective. The supporting research for these funds from the various ETF providers focuses on periods of many years, not several months.

SPLV, in its current constituency, does appear to take more interest rate risk at a time when rates finally seem ready to move higher. USMV will likely be the better performer if interest rates do indeed go up.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
USMV $41.66 -0.55%
SPLV $38.10 -0.37%
AAPL $129.04 -0.04%
FB $79.08 -0.84%
GOOG $570.37 -0.17%


DOW 18,181.84 -106.79 -0.58%
S&P 500 2,103.93 -13.46 -0.64%
NASDAQ 4,969.1350 -38.9610 -0.78%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs