Large-Cap ETFs Weather Stock Slump

Large-cap ETFs are becoming more attractive by the day.

The topsy-turvy conditions of the S&P 500 have pushed the CBOE Volatility Index up by 21% in the past month as investors brace for a tough road ahead. This uptick in volatility is providing a strong case to take cover in large-company shares, which are at the heart of well-balanced portfolios built to hold up in stormy weather.

Adriana Posada, a portfolio manager of the American Beacon Large Cap Value Fund(AAGPX Quote), stresses the importance large-cap equities. "They should be the bedrock of an individual investor's portfolio because they tend to be less volatile," she said. ...