NEW YORK (TheStreet) -- Investors can expect continued volatility in the second quarter as short-term news -- mixed economic data and unimpressive corporate revenue -- keep a cap on what I see as longer-term positive growth.
The pace of global economic growth will continue to accelerate and consumer sentiment will remain strong. Couple those with continued low-interest rates and loose monetary policy, investors are right to expect stocks to continue to rise. As such, remaining invested while managing risk and portfolio volatility will remain critical.
Selecting the right exchange-traded funds will help the investor play defense in this environment. It's hard to believe but the ETF is just 20 years old. Since Barclays introduced its first ETF in the iShares Portfolio, they've become both incredibly broad in scope and finite in scope.
The ones I'm recommending for the second quarter this year -- and, frankly, for the year -- are low-cost, have good track records, low volatility and contain high-quality growth names.
Investors who want exposure to the S&P 500 with a little less risk might want to consider the Guggenheim S&P 500 Equal Weight ETF (RSP). Because this ETF weighs its holdings equally, as opposed to by market capitalization such as the S&P 500 Index, the risk of one of the larger holdings within the index unduly impacting performance are eliminated. Apple (AAPL), the index's largest holding, continues to underperform.
RSP has an 11 year-track record, low expenses and is easy to understand -- all important criteria to selecting any investment. Over the past decade, RSP has handily beaten the S&P 500 with a near 10% annual return compared to 6.4% for the index. To further manage risk, the ETF is rebalanced on a quarterly basis.