Loading…
Loading…
Low-volatility ETFs are gaining appeal as tariffs, Hormuz tensions, AI worries and oil-led inflation fears shake markets. Here are five reasons why.
Overvaluation fears, geopolitical tensions and rising stagflation risks are driving investors toward low-volatility and value-focused ETFs.
FDLO hits a new 52-week high as investors favor low-volatility stocks amid inflation and geopolitical risks.
While momentum, growth, and high-beta strategies have served as the engines driving quarter-to-date returns for factor ETFs, a subtle shift under the hood suggests a potential factor rotation may be underway. Notably, the same sectors that have propelled the broad market higher this quarter encountered a sharp reversal over the past two trading sessions.
JPMorgan Chase and Co. decreased its position in Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO) by 59.1% in the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 31,134 shares of the company's stock after selling 44,982 shares during the period. JPMorgan
Fidelity Low Volatility Factor ETF is a passively managed ETF currently offering exposure to 126 common stocks with a weighted average 24-month beta of 0.78. FDLO is beating IVV in 2026 amid the capital rotation yet lagging low volatility-focused vehicles like SPLV and LGLV. The issue is that FDLO has more in common with IVV than with SPLV, including exposure to the trillion-dollar league.
When you're in or near your retirement years and safety becomes priority number one, picking out individual stocks can seem risky. As an alternative to single stocks, you can own exchange traded funds (ETFs), some of which provide broad diversification and reduce volatility. To help you retire in comfort, you might look at ETFs that... 3 Safety-First ETFs to Retire in Comfort.
The Fidelity Low Volatility Factor ETF targets large U.S. stocks with low price and earnings volatility, aiming for market-like returns with reduced risk. FDLO has lagged the Russell 1000 in both total and risk-adjusted returns since inception, particularly over the past year. Despite lagging the benchmark, FDLO has outperformed most low-volatility ETF peers since 2018.