The low-volatility approach can lag during roaring bull markets, but the strategy holds its own in rallies that favor high-quality blue chips. During the past year, the low-volatility ETF returned 15.9%, while the MSCI EAFE index gained 16%. Though some growth stocks can be volatile, the MSCI EAFE Growth ETF has excelled in downturns. "This is a good holding for someone who wants international exposure and prefers to take a defensive position," says Alex Bryan, a Morningstar analyst. To assemble the growth portfolio, the MSCI index designers divide the EAFE universe in half. Stocks with faster sales and earnings growth go into the growth benchmark, while the rest are considered value stocks. The final growth portfolio includes many high-quality stocks with less debt than average and higher profit margins. Holdings include alcoholic beverage maker Diageo ( DEO) and consumer products giant Unilever ( UL). Such powerhouses perform relatively well in downturns. Part of the reason that the growth fund weathered the turmoil of 2008 is that the portfolio holds few financials, which plunged during the downturn. The portfolio is overweight consumer staples, a category that tends to deliver consistent results. The growth fund has a sizable stake in Europe. But there is a relatively small weighting to the troubled economies of Southern Europe. Instead, the portfolio focuses on healthier countries such as Germany and Switzerland. Many holdings are strong multinationals that have been achieving solid growth by exporting to emerging markets. Another fund that holds high-quality stocks is PowerShares International Dividend Achievers. Holdings in the portfolio have increased their dividends for at least five consecutive years. Companies that pass the test tend to have strong cash flows and solid balance sheets. The fund has a dividend yield of 3.2%. The fund has 20% of its assets in telecoms, including many dominant service providers. Holdings include China Mobile ( CHL) and Telefonica, S.A. ( TEF), a Spanish provider that is growing in Latin America. The portfolio has 17% of assets in energy companies, including Norwegian giant Statoil ASA ( STO), a leading producer in the North Sea. The PowerShares portfolio has 20% of assets in Canadian companies, including Canadian Pacific Railway ( CP) and Canadian National Railway ( CNI). At the time of publication the author held no positions in any of the stocks mentioned. Follow @StanLuxenberg This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.