ETF Talk

Seek Low Volatility with This Fund

The Fidelity Low Volatility Factor ETF (FDLO) seeks to provide investment returns that correspond to an index that is designed to reflect the performance of large- and mid-capitalization U.S. stocks with lower volatility than the broader market.

FDLO hunts from the 1,000 largest U.S. stocks for those with low volatility in returns and earnings. The fund uses a scoring system, based on three metrics: low volatility of returns, low earnings volatility and low beta (a measure of volatility compared to the market). FDLO has $53.94 million in total assets in its holdings, which are rebalanced twice annually.

So far, 2018 has been a year of high volatility. As a result, low volatility ETFs are among the most popular “smart beta,” or factor-based, funds on the market. One of the cornerstones of factor investing is the low-volatility factor.

Click here to read the rest of the article, “Seek Low Volatility with This Fund.


Sign Up