Low-Vol ETFs Attract $13 Billion of Inflows

The video discusses the recent uptick in market volatility and the growing popularity of low volatility ETFs, which are attracting significant investment despite market fluctuations. It highlights the performance of these ETFs compared to their parent indices and explores the sustainability of such investment trends. The video also examines unique ETFs, such as small-cap low volatility and currency-hedged ETFs, and their market performance.

What is one reason older investors are attracted to low volatility ETFs?

• They minimize risk by limiting downside.

• They provide a balance of risk and reward.

• They offer high returns with high risk.

• They are the most expensive investment option.

How much have low volatility ETFs outperformed their parent indices by?

• 5%

• 2%

• 15%

• 10%

What past investment craze is mentioned as a comparison to the current low volatility ETF trend?

• Cryptocurrency

• Real Estate

• Gold

• Smart Beta ETFs

What is unique about the PowerShares Small Cap Low Volatility ETF?

• It has higher volatility than the Russell 2000.

• It is the most expensive ETF available.

• It combines small cap with high volatility.

• It reduces volatility by about 25% compared to the Russell 2000.

What advantage does the PowerShares Europe Currency Hedged Low Volatility ETF have over other currency hedged ETFs?

• It is more volatile.

• It is only available in the US market.

• It has a higher cost.

• It is 35% less volatile and has lower costs.