Investors Seeking Low Volatility, Hedged ETFs In Face of Market Storm

Anxious investors are actively seeking out low volatility and hedged exchange traded funds to reduce their market risk, said Dan Draper, Managing Director of Global ETFs for Invesco PowerShares. Draper added that this recent shift is on top of the ongoing secular trend for investors to favor ETFs over individual stocks in order to limit their single stock risk. He said investors are also opting for lower duration ETFs in the fixed income arena especially variable rate and bank loan ETFs. Finally, Draper said that alternative funds continue to be in demand during the market selloff.