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The best Low Volatility ETFs

How to invest in low-volatility ETFs

0.25% p.a. - 0.30% p.a.
annual total expense ratio (TER) of low-volatility ETFs
on the low-volatility factor, which is tracked by ETFs
on the low-volatility factor
The best indices for low-volatility ETFs

How do I invest in low volatility stocks?

Stocks with low volatility tend to yield an excess return compared to the risk taken. This research-based observation is referred to as the low-volatility factor.

There are various possible explanations for this: For example, shares with low volatility may be perceived as less rewarding by investors as they are associated with less risk. Another theory suggests that investors generally overestimate their ability to forecast. For particularly volatile stocks, there is a greater disagreement between investors, which should lead to higher volatility and lower returns.

This factor strategy can also be implemented by means of an index. In this investment guide, you will find all available worldwide low volatility ETFs. Currently, there are 3 ETFs available.
 

MSCI World Minimum Volatility performance

1 month: 1.86%
1 year: -5.18%
3 years: 22.80%
5 years: 36.27%
 

Low-Volatility ETFs in comparison

The most important factors at a glance

When choosing a low-volatility ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all low-volatility ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all low-volatility ETFs in detail
Compare all low-volatility ETFs in a chart

Provider
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc)IE00B8FHGS14 3,240 0.30% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI World Minimum Volatility UCITS ETF 1CIE00BL25JN58 522 0.25% p.a. Accumulating Ireland Optimized sampling
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist)IE00BMCZLJ20 0 0.30% p.a. Distributing Ireland Optimized sampling

Source: justETF.com; As of 26/11/20

 

Return comparison of all low-volatility ETFs

The table shows the returns of all low-volatility ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) -3.15% -1.24% -3.48% -8.48% 15.97%
Xtrackers MSCI World Minimum Volatility UCITS ETF 1C -3.13% -1.26% -3.52% -8.50% 16.05%
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist) -3.09% - - - -
ETF   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
Xtrackers MSCI World Minimum Volatility UCITS ETF 1C -10.05% 26.36% 1.48% 3.44% 10.56%
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) -10.12% 25.54% 2.48% 3.15% 10.93%
iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist) - - - - -

Source: justETF.com; As of 31/10/20; Calculations in EUR including dividends