Here's Why One Investor Says Low Volatility ETF Slump Likely Won't Last

Mixing low volatility with high sustainable dividends is the ideal way for investors - especially retirees - to preserve wealth and also generate income, says James Norman, president of QS Investors. Norman added that the strong compounding effect of this approach has also been "robust" for savers who do not need to spend their assets in the near term. Norman said so-called smart beta strategies like low volatility can be a part of the solution for investors. And in his view not all smart beta strategies are the same. Norman suggests avoiding assets such as high beta cyclicals or "stressed" parts of the equity market like energy stocks and banks, and look instead for more defensive stocks in areas such as telecom, technology, insurance companies, consumer staples and utilities.