Bringing you live news and features since 2006 

Volatility

State Street Global Advisors expands low volatility ETF range

RELATED TOPICS​

State Street Global Advisors (SSgA) has expanded its low volatility exchange-traded fund range, with the launch of the SPDR EURO STOXX Low Volatility UCITS ETF, which has been listed on the Deutsche Börse Xetra.

The new ETF will track the EURO STOXX Low Risk Weighted 100 Index and joins SSgA’s low volatility ETF range which includes the SPDR S&P 500 Low Volatility UCITS ETF.

 
Investors are finding that alternatively weighted indices are one of the most flexible ways to access less risky and less volatile segments of the equity markets. Low volatility has become one of the most followed advanced beta strategies, and stocks with lower volatility tend to produce greater risk adjusted returns over time.
 
Low volatility has coincided with an increase in so-called outcome-oriented investing, where the emphasis has shifted from targeting relative outperformance towards creating portfolios that have a higher likelihood of meeting investors’ future needs. For many investors, low volatility equities may prove to be part of the solution as they seek to offer an attractive combination of upside participation and potential downside protection.
 
Edwin Mars, vice president and senior sales manager IBG ETF (SPDR) Benelux, says: “Investors are looking at ways to limit downside losses in volatile markets. Lower volatility equity investing appeals to those who are less concerned about short-term tracking error relative to the broad market and more focused on lower risk and drawdown characteristics.”
 
“The EURO STOXX Low Risk Weighted 100 Index selects those 100 stocks in the EURO STOXX Index which have shown the lowest volatility over the past year, offering market participants Eurozone exposure with reduced portfolio volatility through a transparent and easily understandable index concept,” says Hartmut Graf, chief executive officer, STOXX Limited.

Latest News

BlackRock s iShares an undisputed leader among European ETF issuers pushed further ahead in Q1 with EUR173 billion in trades..
European ETFs raised USD47 8 billion in Q1 a 15 per cent increase compared to the same period in 2023..
LSEG Lipper s March report finds that globally equity ETFs +EUR113 2 billion enjoyed the highest estimated net inflows for..
Morningstar has published a review of the European ETF market for the first quarter 2024 which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs share of the US ETF market rose to 8 5 per cent at...
Kristen Mierzwa, FTSE Russell
Index Investments Group IIG a division within index provider FTSE Russell has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023 with an introductory suite of 11 ETFs seven thematic and four fundamental...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by