Solid returns and low volatility: Top ETFs
Low-risk ETFs are attracting big money.
Halfway through 2016, investors have already surpassed the $10.7 billion placed in the ETF category all of last year, according to Deutsche Bank. Low-volatility ETFs have attracted $14.3 billion from January through June.
Other ETF categories “experienced erratic flows with cumulative YTD flows bottoming at over $35 billion in outflows in February and ending at over $15 billion outflows at the end of June,” the bank’s researchers report.
While health care and, biotech, are typically volatile, the Health Care Select Sector SPDR ETF leads the low-volatility space because of its large-cap concentration, says Morningstar ETF research head Alex Bryan.
“Earnings and cash flows in that sector tend to be a little less volatile,” he says.
Scroll through to see the top performers ranked by three-year return. All data from Morningstar.