Short interest for Invesco S&P International Developed Low Volatility ETF gives investors a sense of the degree to which investors are betting on the decline of Invesco S&P International Developed Low Volatility ETF's stock. Short interest data is updated every two weeks.

Invesco S&P International Developed Low Volatility ETF (ARCA:IDLV), Short Interest Report

Invesco S&P International Developed Low Volatility ETF

PowerShares S&P International Developed Low Volatility Portfolio

Long Ideas

Specialty ETFs

Markets

Trading Ideas

ETFs

IDLV

Live Large With Developed Markets Without The Volatility

News

Broad U.S. Equity ETFs

New ETFs

Intraday Update

EQAL

PowerShares S&P 500 Low Volatility Portfolio

SPLV

Come Together: Low Volatility Meets Equal-Weight In These ETFs

Short Ideas

Events

Global

After-Hours Center

Movers

EEMV

Volume Spikes in Global Low Volatility ETF

The low volatility factor and the exchange-traded funds dedicated are spending plenty of time in the limelight this year. Much of attention heaped upon these ETFs falls into the category of adulation, but there are concerns that among U.S.-focused low volatility products, the trade is crowded and that <a href="http://www.benzinga.com/news/16/08/8398505/low-vol-hot-streak-could-be-cooled-by-valuations">frothy valuations</a> could prompt a dangerous rush for the exits.
Nearly half of the world&#39;s combined equity market capitalization is found outside the United States, but U.S. investors often associate international investments, even developed markets fare, as being more volatile than domestic equivalents. Combine the home country bias with perceptions about volatility and there is a logical explanation for why most U.S. investors heavily tilt their portfolios to U.S. investments.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8408537/enthusiasm-for-energy-etfs">Enthusiasm For Energy ETFs</a></bzrelatedlink>
And simply because US-focused low volatility ETFs are on the receiving end of some criticism, that does not mean the strategy lacks merit for ex-U.S. developed markets. The PowerShares S&amp;P International Developed Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)) is an option to consider on that front.
<h3>No Idleness With IDLV</h3>
IDLV, which is now more than 4.5 years old and home to more than $350.7 million in assets under management, follows the S&amp;P BMI International Developed Low Volatility Index. That index &ldquo;consists of the 200 least volatile stocks of the S&amp;P Developed ex. US and South Korea LargeMid Cap BMI Index over the past 12 months,&rdquo; according to<a href="https://www.invesco.com/portal/site/us/investors/etfs/product-detail?productId=IDLV&amp;ticker=IDLV&amp;title=powershares-s-p-international-developed-low-volatility-portfolio"> PowerShares</a>, the fourth-largest U.S. ETF issuer.
While IDLV can be seen as a complement to or replacement for traditional EAFE exposure, the ETF differs significantly from standard EAFE indexes. For example, Canada is IDLV&#39;s largest country weight at 17.2 percent. Likewise, the ETF is not heavily allocated to Japanese stocks as are most EAFE index funds. IDLV is also overweight Australia and underweight Switzerland compared to standard EAFE fare.
With Canada, the U.K. and Australia &mdash; three of the top dividend growth markets outside the United States &mdash; combining for over 46 percent of IDLV&#39;s weight, the ETF packs a decent yield punch. IDLV&#39;s trailing 12-month distribution yield is 3.5 percent, which is better than the S&amp;P 500, U.S. Treasurys and the yields on most of the sovereign bonds issued by IDLV&#39;s constituent countries.
IDLV is not currency hedged, indicating the ETF could be vulnerable to some downside if the dollar rises. Then again, the MSCI EAFE Index is not currency hedged either, and that index is up just 0.4 percent this year while IDLV is up 10.4 percent.
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There is an increasing number of ways to approach smart or strategic beta methodologies in the world of exchange-traded funds. Some critics would argue the universe encompassing strategic beta is becoming unwieldy and too complex for many advisors and investors to digest.
	What cannot be debated is that equal-weight and low volatility strategies are two of the most widely embraced strategic beta avenues. Fortunately, equal-weight and low volatility are, usually, relatively easy to understand, so combining the two themes under the umbrella of a single ETF should be seen as a feasible adventure.
<h3>New ETF Adventures For PowerShares</h3>
PowerShares, the fourth-largest U.S. ETF issuer, has done just that with last Thursday&#39;s launches of the PowerShares Russell 1000 Low Beta Equal Weight Portfolio (POWERSHARES EXCHANGE TRADED FD TST (NASDAQ: USLB)) and the <bPowerShares FTSE International Low Beta Equal Weight (NASDAQ: IDLB).</bpowershares>
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5934893/a-winning-dividend-etf-for-market-tumult">A Winning Dividend ETF For Market Tumult</a></bzrelatedlink>
This is not new territory for PowerShares. For example, the success of the PowerShares S&amp;P 500 Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)) <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5943650/ditching-volatility-with-emerging-markets-etfs">sparked the creation</a> of the PowerShares S&amp;P International Developed Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)).
<h3>USLB</h3>
The PowerShares Russell 1000 Low Beta Equal Weight Portfolio is home to nearly 420 Russell 1000 constituents exhibiting low beta traits. The new ETF tracks the Russell 1000 Low Beta Equal Weight Index, which is part of a new index series from indexing giant FTSE Russell.
&ldquo;This new index series is designed to reflect the performance of securities exhibiting relatively low beta, or market volatility, where all index constituents are weighted equally. The new series initially includes two indexes based on well-recognized market capitalization weighted benchmarks from FTSE Russell. The Russell 1000&reg; Low Beta Equal Weight Index tracks US large cap stocks and the FTSE Developed ex-US Low Beta Equal Weight Index tracks large and mid-cap stocks from developed markets outside the US,&rdquo; said FTSE Russell <a href="http://www.ftse.com/products/home">in a statement</a>.
<h3>FTSE Russell And PowerShares' Relationship</h3>

FTSE Russell and PowerShares have an expanding, successful partnership that includes some well-known and fast-growing strategic beta ETFs. The PowerShares Russell 1000 Equal Weight POrtfolio (NYSE: <a class="ticker" href="/stock/eqal#NYSE">EQAL</a>) is <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5900689/long-term-investors-should-get-to-know-this-equal-weight-etf">part of that group</a>. Still not even a year old, EQAL is home to $153.4 million in assets.
USLB, which charges 0.35 percent per year, allocates 27.7 percent of its weight to financial services stocks, more than double the weight assigned to healthcare, the new ETF&#39;s second-largest sector weight.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5943650/ditching-volatility-with-emerging-markets-etfs">Ditching Volatility With Emerging Markets ETFs</a></bzrelatedlink>
<h3>IDLB</h3>
The PowerShares FTSE International Low Beta Equal Weight Portfolio, USLB&#39;s international equivalent, follows the FTSE Developed ex-US Low Beta Equal Weight Index. Japan dominates the new ETF with a weight of 34.3 percent. No other country exceeds 7.8 percent in IDLB&#39;s lineup. IDLB, which holds nearly 800 stocks, devotes over 40 percent of its combined weight to industrial and financial services stocks.
As PowerShares Managing Director Dan Draper noted, advisors and professional investors are boosting their exposure to equal-weight <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5871033/the-survey-says-advisors-love-smart-beta-etfs">and low volatility strategies</a>. 
&ldquo;Survey results show that nearly half (48 percent) of the financial advisors surveyed use an equal weight index, or plan to use one in the near future, and more than half (52 percent) are already using or very likely to use a low volatility index,&rdquo; said Draper in the statement.
Image Credit: <a href="https://pixabay.com/en/see-saw-swing-swing-device-bar-339506/">Public Domain</a>

Perhaps it is the latest sign of just how popular low volatility ETFs have become or maybe there is another catalyst. 

Whatever the reasons may be, the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>) easily fits the bill as an ETF trading on usually high volume Monday.

While the PowerShares S&amp;P International Developed Low Volatility Portfolio is flat in late trading, more than 802,000 shares have changed hands in the ETF, roughly 27 times the daily average. 

A possible explanation for the increased volume in IDLV is the ETF's exposure to Japan. IDLV allocates almost 28 percent of its weight to the world's third-largest economy and the ETF was <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3378741/more-low-vol-etfs-your-broker-forgot-to-mention">previously highlighted as an alternative to pure-play Japan exposure</a>.

Or IDLV's 14.4 percent weight to the U.K., which saw Fitch Ratings strip it of its AAA credit rating last Friday, could be the reason for the volume spike. 

Another theory would be that investors are looking for exposure to multiple AAA-rated countries under the umbrella of one ETF. The <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2812304/reviewing-the-cassh-etfs">CASSH countries</a> of Canada, Australian, Singapore, Switzerland and Hong Kong, all AAA-rated, combine for about 49 percent of IDLV's weight.

Compared to other low volatility ETFs such as the PowerShares S&amp;P 500 Low Volatility (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>), IDLV is small and has lead a relatively anonymous existence.

The size aspect of that equation has quietly been changing for the better this year. IDLV entered Monday's session with $54.8 million in assets under management, $29.3 million of which has been accumulated this year, <a href="http://www.invescopowershares.com/flows/">according to PowerShares data</a>. In the past month alone, IDLV has hauled in more than $12.1 million in assets.

The modest move in IDLV shares today does not indicate a high level of excitement, but the volume could be a sign this ETF is one to keep an eye on in the near-term.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF issuer, said today its popular PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) has topped $4 billion in assets under management. 

At the start of trading Monday, the PowerShares S&amp;P 500 Low Volatility Portfolio, the dominant U.S.-focused low volatility ETF, had $4.057 billion in assets under management, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=SPLV">according to PowerShares data</a>.

"Invesco PowerShares pioneered low-volatility ETFs. We take pride in being first to market with groundbreaking products, and SPLV is a prime example of our ongoing commitment to innovation," said Ben Fulton, Invesco PowerShares managing director of global ETFs, in a statement. "As the flagship low-volatility ETF on the market, SPLV has averaged over $7.6 million in inflows per day since its inception."

SPLV is comprised of the 100 S&amp;P 500 stocks with the lowest trailing 12-month volatility. Top holdings currently include Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and General Mills (NYSE: <a class="ticker" href="/stock/gis#NYSE">GIS</a>). SPLV's top sector allocations are utilities at 30.74 percent an consumer staples at just over 20 percent. Financial services names account for 15.4 percent of the ETF's weight.

Since inception in May 2011, SPLV has gained 14.26 percent compared to a 9.63 percent gain for the S&amp;P 500 while being 570 basis points less volatile than the benchmark U.S. index, PowerShares said in the statement. SPLV has outperformed and been less volatile than the MSCI USA Minimum volatility index over the same time.

SPLV's ascent to the lofty $4 billion in AUM level is not surprising as investors have embraced low volatility ETFs in significant fashion. Through February 19, investors had poured <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3378741/more-low-vol-etfs-your-broker-forgot-to-mention">$900 million into low volatility ETFs</a>.

PowerShares sponsors four other low volatility ETFs in addition to SPLV. The PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>) is home to $128.6 million in assets while the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>) has $48.1 million in assets. Both funds debuted in January 2012.

In February, PowerShares introduced the PowerShares S&amp;P MidCap Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/xmlv#NYSE">XMLV</a>) and the PowerShares S&amp;P SmallCap Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/xslv#NYSE">XSLV</a>). Those ETFS have $2.6 million and $5.2 million in AUM, respectively.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

EELV

XMLV

XSLV

PowerShares Low Volatility ETF Tops $4B in AUM

With all due respect to the world of high fashion, low volatility ETFs are the new black. Inflows of $900 million <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3378741/more-low-vol-etfs-your-broker-forgot-to-mention">from the start of 2013 through February 19 affirm that assertion</a>. 

Alone, the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) now has over $4 billion in assets under management. The iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>) have made their presences felt in the "low vol" ETF arena as well with $1.76 billion and $1.56 in AUM, respectively.

Bottom line: Investors love low volatility ETFs, but what about the high beta equivalents? It is a question worth exploring, particularly if <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/03/3409959/use-this-etf-for-a-high-beta-resurgence">cyclical sectors take on leadership roles and lead the broader market higher</a>.

Investors willing to take on some added beta should consider the following three ETFs, all courtesy of Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit.

PowerShares S&amp;P Emerging Markets High Beta Portfolio (NYSE: <a class="ticker" href="/stock/eehb#NYSE">EEHB</a>)
The PowerShares S&amp;P Emerging Markets High Beta Portfolio can be described as the high beta equivalent of the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>). For its part, EELV got off to a slow start following its January 2012, but has since surpassed the much ballyhooed $100 million in AUM total. The fact that EELV has returned almost 17 percent since inception certainly helps.

EEHB is still a small ETF ($2.3 million in AUM). Part of the reason for that is because as a high beta fund, it can be said that EEHB needs a sanguine environment for emerging markets equities in which to thrive. On a related note, the ETF's country lineup is arguably surprising. An almost 25 percent allocation to China is not unexpected, but South Korea and Taiwan combine for nearly 30 percent of EEHB's weight and those are two markets that are viewed as "lower beta" in the emerging world.

Additionally, EEHB's allocations to Russia (5.5 percent) and India (3.8 percent) are not that large and those are two higher beta emerging markets. There are some things to like with EEHB. An expense ratio of 0.29 percent is decent among emerging markets ETFs. The fund currently has a P/E ratio of 13.75 and a price-to-book ratio of just 0.59, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=EEHB">according to PowerShares data</a>, implying it trades at favorable valuations relative to other diversified emerging markets ETFs.

PowerShares S&amp;P International Developed High Beta Portfolio (NYSE: <a class="ticker" href="/stock/idhb#NYSE">IDHB</a>)
Like EEHB, the PowerShares S&amp;P International Developed High Beta Portfolio has a low volatility cousin in the form of the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>). IDHB is the newer of the two, having debuted a month after its low volatility counterpart. And like EELV, IDHB has trailed its low volatility equivalent in terms of attracting assets (IDHB has about 20 percent of the assets IDLV has).

And like EEHB, IDHB surprises at the country level. As high beta developed market play, IDHB could lead investors to think the ETF is heavy on risky markets such as Italy and Spain. In reality, that is not the case.

In fact, IDHB merits consideration because its exposure to some of Europe's higher quality markets is significant. For example, Sweden is the ETF's largest country weight at nearly 15 percent. Germany is third at over 10 percent. Finland, Norway and Canada, all of which have AAA credit ratings, combine for over 16 percent of IDHB's weight. IDHB has a 30-day SEC yield of 2.54 percent and an annual expense ratio of 0.25 percent, which is favorable for an international ETF.

PowerShares S&amp;P 500 High Beta Portfolio (NYSE: <a class="ticker" href="/stock/sphb#NYSE">SPHB</a>)
As was recently noted, <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/03/3409959/use-this-etf-for-a-high-beta-resurgence">SPHB is the high beta equivalent of SPLV</a>. Given SPLV's success, comparisons here are hard, but it should be noted SPHB has done pretty well for itself with almost $264 million in AUM.

As SPLV takes the 100 S&amp;P 500 members with lowest trailing-12 month betas, SPHB takes the 100 highest beta names over the same time frame. To that end, it is not surprising that financials account for almost 25.5 percent of the ETF's weight and four financial services stocks are found among SPHB's top-10 holdings. 

Technology is the next largest sector weight at 20.7 percent. SPHB is not excessively levered to any of its holdings as 1.64 percent is the largest weight granted to any of the fund's constituents. Year-to-date, SPHB has impressed with a gain of 10.5 percent, clearly benefiting from U.S. stocks continuing to hover near all-time highs. 

Beyond that, SPHB, which charges 0.25 percent per year, offers investors a way of getting mid-cap exposure with high beta twist because mid-cap value and growth names represent over 60 percent of the ETF's weight.

For more on volatility ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/03/3409959/use-this-etf-for-a-high-beta-resurgence">here</a>.

Emerging Market ETFs

EEHB

IDHB

SPHB

USMV

3 High Beta ETFs Your Broker Forgot to Mention

By any standard the, iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>) is big. With almost $41.8 billion in assets under management, the ETF is one of the biggest ETFs by that metric of any stripe. EFA is also heavily traded with average daily volume north of 17.4 million shares over the last three months.

More important than those superficial metrics is the potential EFA is showing to make a big move to the upside. This according to noted technical analyst Chris Kimble of <a href="http://blog.kimblechartingsolutions.com/">Kimble Charting Solutions</a>.

Kimble points out that EFA is facing horizontal resistance around the $59.15 area as well as diagonal resistance brought on by downtrend line going back to the ETF's <a href="http://blog.kimblechartingsolutions.com/wp-content/uploads/2013/03/efahsheadinsandmar71.jpg">2007 high</a>. The right shoulder of a head and shoulders pattern may also be forming in EFA as well, according to Kimble.

The head and shoulders pattern is usually viewed by technical analysts as a bullish reversal pattern, often spotted when a security is in an uptrend. EFA fits the bill. The ETF is just pennies below its 52-week high and has gained almost seven percent in the past three months.

"The global community would benefit if EFA can break from this pattern," said Kimble.

That statement could prove to be accurate because EFA's heft gives it marquee status among ETFs focusing on non-U.S. developed market equities. The Vanguard MSCI EAFE ETF (NYSE: <a class="ticker" href="/stock/vea#NYSE">VEA</a>), Vanguard's answer to EFA, is displaying similar bullish traits and is also up about seven percent in the past 90 days. 

Investors should note what countries are the primary drivers of EFA's price action. While the fund is light on the most volatile Eurozone members such as Spain and Italy (those two represent barely over fiver percent of EFA's weight), the U.K. and Japan combine for almost 42 percent of the ETF's weight. No other countries garner double-digit allocations within EFA, but Australia and Switzerland each account for more than nine percent of the ETF's weight.

Investors looking for lower volatility alternatives to EFA can consider the iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>). EFAV, which has almost $416 million in AUM, has a weight to financial services stocks that is about 600 basis points less than EFA's while featuring an allocation to staples stocks that is about 500 points higher. EFAV is up 5.5 percent in the past 90 days.

Another alternative to consider is the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>), which tracks the S&amp;P BMI International Developed Low Volatility Index. IDLV is Japan-heavy as that country accounts for nearly 39 percent of the ETF's weight. Canada and the U.K. combine for another 32 percent. 

IDLV has a 30-day SEC yield of 4.37 percent and a price-to-book ratio of 1.55, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=IDLV">according to PowerShares data</a>. EFA has a 30-day SEC yield of 3.61 percent and a price-to-book ratio of 2.62.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Analyst Color

Technicals

EFAV

Big ETF Could be Headed for Big Breakout

There is no denying that low volatility ETFs are becoming increasingly popular with investors. Just look at what this sub-sector of the ETF universe has been able to accomplish in less than years. 

The king of the group is the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), which has raked in almost $3.5 billion in assets. SPLV will not turn two years old until May.

On Wednesday, iShares announced its four-ETF suite of low volatility funds <a href="http://www.benzinga.com/news/13/02/3372887/ishares-low-vol-etfs-top-4b-in-aum">has topped a combined $4 billion in assets under management</a>. That quartet of ETFs debuted in October 2011. The trend of robust inflows to low or minimum volatility ETFs is not just continuing. It is surging. 

"This year through February 19, as the chart shows, min vol funds have attracted average monthly flows of close to $900 million. That is more than double the average monthly flows we saw in 2012 and far above 2011's average monthly flows of less than $100 million," <a href="http://isharesblog.com/blog/2013/02/28/using-min-vol-etfs-to-access-stocks/">according to a note by Dodd Kittsley</a>, global head of ETP research at BlackRock (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>).

As is often the case with various corners of the ETF space, some "low vol" funds are gaining brand-name recognition, such as SPLV, while some still undiscovered. However, there are a few that fit into the latter category that investors should have a look at. 

PowerShares S&amp;P 500 High Dividend Portfolio (NYSE: <a class="ticker" href="/stock/sphd#NYSE">SPHD</a>)
Obviously, SPHD's name indicates this is a dividend ETF, which it is and it is arguably one of the <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3346880/under-the-hood-a-new-dividend-etf-diva">more compelling new income funds on the market</a>.

However, SPHD's underlying index tells investors this is low volatility play as well. The fund tracks the S&amp;P 500 Low Volatility High Dividend Index, which tracks the 50 S&amp;P 500 components with historically high dividend yields and low volatility. That combination could be alluring for investors that are looking for more in the way yield.

For example, SPHD has a 30-day SEC of over four percent. That easily exceeds that of many popular dividend ETFs that do not screen for low volatility names. Like SPLV, SPHD pays a monthly dividend and features large weights to utilities (over 23 percent) and consumer staples (over 13 percent). SPHD is up 7.7 percent year-to-date, outpacing the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) by about 40 basis points in the process.

iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)
The iShares MSCI EAFE Minimum Volatility Index Fund is the low volatility answer to the wildly popular ishares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>), one of the largest ETFs of any stripe. EFAV is not nearly as big as EFA, though with $287.6 million in AUM the latter is by no means small. 

EFAV is cheaper than EFA with a an expense ratio of 0.2 percent compared to 0.34 percent for EFA, but the lower expenses come with some cost to investors as EFA has been the better performer since EFAV debuted in October.

Indicating that market environment plays an importance part in the returns accrued by low volatility ETFs, EFAV has sharply outpaced EFA this year as Eurozone fears have once again risen. EFAV's sector weights give away the reasons for its out-performance of EFA this year.

EFAV's weight to financials is 570 basis points less than EFA's, but the former's weight to consumer staples and health care names are each more than 500 basis points greater than the latter's.

PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)
For the moment, the PowerShares S&amp;P International Developed Low Volatility Portfolio is one of those ETFs that fans of superficial metrics such as assets and volume love to hate. IDLV has just under $35 million in AUM and average daily volume of less than 16,900 shares. 

IDLV features at least one surprise, that being a 25.8 percent weight to financial services stocks, a fairly large allocation to that sector among low volatility ETFs. Consumer staples follow with a weight of 21.8 percent. On the other hand, IDLV does temper volatility by featuring scant Eurozone exposure. For example, Germany and the Netherlands combine for less than 2.7 percent of the ETF's weight.

At the country level, there are two other issues to consider with IDLV. First is a 38.5 percent weight to Japan. As that exposure is unhedged, IDLV could be somewhat vulnerable if the yen bounces back. Second, the ETF has an 11.7 percent weight to the U.K., which recently lost its AAA credit rating.

The good news is IDLV is up 4.3 percent year-to-date and has a 30-day SEC yield of 4.42 percent, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=IDLV#freqdist">according to PowerShares data.

For more on ETFs, click </a><a href="http://www.benzinga.com/etfs">here</a>.

SPHD

More Low Vol ETFs Your Broker Forgot to Mention

Markets may be closed until Monday, but there is at least one event scheduled to start of the weekend that could have traders feeling skittish over the next 48 hours: Italy's elections. Candidates wrapped up their campaigns in the Eurozone's third-largest economy with most pundits and prognosticators viewing the raise as too close to call.

Center-left leader Pier Luigi Bersani held a solid five-point lead over former Prime Minister Silvio Berlusconi two weeks ago, but that gap has narrowed as experts have doubted Bersani's ability to form a coalition government aimed at <a href="http://www.reuters.com/article/2013/02/22/us-italy-vote-idUSBRE91L14T20130222">delivering Italy from recession</a>.

Current Prime Minister Mario Monti, who had to be prodded into seeking another term, is believed to be the preferred candidate of financial markets, but Reuters reports Monti's campaign has lost steam in recent days. At the moment, the most likely outcome appears to be a shared alliance between Bersani and Monti, though even that scenario could lead to the undoing of some of the harsh but necessary austerity measures Monti has implemented. 

With the result far from evident, traders can still prepare for any outcome with the following ETFs.

iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>)
Obviously, this list must lead off with the lone Italy-specific ETFs. EWI, which has almost $555 million in assets under management, is in a tough spot, fundamentally and technically speaking. The ETF devotes over 19 percent of its weight Italian oil giant Eni (NYSE: <a class="ticker" href="/stock/e#NYSE">E</a>), but oil prices are coming off a rough week on global growth concerns.

As for the technicals, EWI fell out of <a href="http://www.finviz.com/quote.ashx?t=ewi&amp;ty=c&amp;ta=1&amp;p=d">upward channel with a 2.86 percent decline this week</a> and may not find support until $12. That is where the 200-day moving average can be found. 

Interestingly, 8.73 percent of EWI's shares are sold short, though that number is small when measured against the comparable France and Spain ETFs.

ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>)
Consider EUO a Berlusconi play, as in the euro will likely falter against the U.S. dollar immediately if Berlusconi runs to a surprise victory. The scenario here is simple. Berlusconi is enjoying something of a political rebirth, gaining ground in the court of public opinion, because of anti-austerity rhetoric. 

That may be what the average Italian voter wants to hear, but it is not what markets want. A victory by Berlusconi could be seen as damaging to Italian austerity and to the European Union at large because fears of an Italian bailout could be reignited.

Consider this: Credit markets have spoken regarding Italian politics. Berlusconi was still in office in late 2011 when yields on 10-year Italian sovereigns spiked <a href="http://www.bloomberg.com/quote/GBTPGR10:IND/chart">over seven percent</a>. That yield closed at 4.45 percent Friday.

PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)
An interesting choice to be sure, particularly because the PowerShares S&amp;P International Developed Low Volatility Portfolio features no exposure to Italy. Then again, that is the point behind this selection. Italian elections should be the lone determinant for investors selling ex-U.S. developed world equities. Fortunately, IDLV does not force investors to be monitoring Italian polls this weekend.

With a 38 percent allocation to Japan, IDLV is an indirect play on a weaker yen. With Australia, Singapore, Switzerland, Hong Kong, the Netherlands and Germany combining for almost 27 percent of IDLV's weight, investors grab ample exposure to AAA-rated countries. All that comes with a <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=IDLV">4.57 percent 30-day SEC yield</a> and no exposure to Italy.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Bonds

Currency ETFs

Politics

Forex

Must Know ETFs For Italy's Election

Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF sponsor, said Wednesday it will introduce two more low volatility ETFs on Friday, expanding its lineup of such funds to five.

The new PowerShares low volatility offerings will be the PowerShares S&amp;P MidCap Low Volatility Portfolio (NYSE: XMLV) and the PowerShares S&amp;P SmallCap Low Volatility Portfolio (NYSE: XSLV). 

XMLV is based on the S&amp;P MidCap 400 Low Volatility Index, which is designed to measure the performance of 80 of the least volatile stocks from the S&amp;P MidCap 400 Index over the past 12 months, according to PowerShares. 

XSLV is based on the S&amp;P SmallCap 600 Low Volatility Index, which is designed to measure the performance of 120 of the least volatile stocks from the S&amp;P SmallCap 600 Index over the past 12 months, the firm said in a statement.

PowerShares has proven to be one of the leaders among ETF sponsors when it comes to so-called "low vol" funds. The firm introduced the category's dominant ETF in May 2011, the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), a fund that has already raked in more than $3.3 billion in assets under management.

The PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>), which is just over a year old, has $103 million in assets while the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>), also just over a year old, has $34.4 million in AUM.

Since inception on January 13, 2012, both EELV and IDLV have achieved better risk-adjusted returns compared to their respective MSCI benchmarks, according to PowerShares.

Investors continue to embrace low-volatility ETF strategies as a simple and effective way to maintain equity exposure while mitigating overall portfolio risk," said Ben Fulton, Invesco PowerShares managing director of global ETFs, in the statement. "The two new PowerShares ETFs will provide investors with convenient access to low volatility strategies covering the US mid-cap and small-cap segments."

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

PowerShares to Expand Low Volatility ETF Suite

One of the most popular ETFs launched in the past couple years is PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), and it's not hard to guess why.

After suffering through the dot-com crash and 2008 financial crisis, investors are putting a premium on safety, particularly when dipping their toes into stocks.

In the last five years, investors have pulled $548 billion from U.S. equity mutual funds and plowed more than $1 trillion into taxable fixed-income funds, according to ConverEx Group. However, equity-based ETFs have gathered $330 billion of inflows during the same period.

Recently, a decent chunk of these ETF flows has been earmarked to “safer” funds that employ low-volatility and dividend strategies with indexes.

For example, SPLV has quickly grown to over $3 billion in assets after launching in May 2011. The fund is one of the biggest success stories in ETFs the past few years, and investors can expect more low-volatility funds to hit the market in 2013.

The ETF's tracking index is comprised of the 100 stocks from the S&amp;P 500 with the lowest realized volatility the past year. Volatility is a measure of a security's tendency to jump around in price.

SPLV has been popular because the strategy is relatively easy to explain and understand, and investors want some downside protection when venturing into stocks.

The fund turned in a respectable 2012 with a 10.1% total return but it did trail the S&amp;P 500, which gained 16%, according to Morningstar. “Naturally, with a low-volatility bent, the fund emphasizes defensive sectors such as utilities and consumer staples,” the investment researcher says in a profile of SPLV.

The fund's underperformance relative to the S&amp;P 500 can be attributed partly to the overweight in these two sectors. Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) rose just 1 percent last year, while Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) added 10.7 percent.

SPLV has 31 percent in the utilities sector and 26.8 percent in consumer staples, according to manager Invesco PowerShares.

Low-volatility strategies have historically earned “excellent risk-adjusted returns” but can “perform miserably during furious bear markets,” Morningstar notes.

Now, Invesco PowerShares is readying a pair of funds in an attempt to capitalize on the success of SPLV. According to a recent filing, the firm wants to launch PowerShares S&amp;P 400 Low Volatility Portfolio and PowerShares S&amp;P 600 Low Volatility Portfolio, which would track the mid-cap and small-cap portions of the U.S. stock market, respectively.

Other existing ETFs on the market designed to track low-volatility benchmarks include:

<ul><li>iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)</li>
<li>iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)</li> 
<li>iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)</li>
<li>PowerShares S&amp;P International Developed Low Volatility (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)</li> 
<li>PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>)</li> 
<li>iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)</li>
<li>EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)</li></ul>

ACWV

HILO

Low-Volatility ETFs Ready for Next Act

Earlier this year, PIMCO's Bill Gross said the <a href="http://www.pimco.com/en/insights/pages/whats-in-a-name.aspx">U.S. is the cleanest dirty shirt in the world</a>. That is to say amid Europe's sovereign debt crisis, Japan's own issues with rising debt burdens and demographic challenges and slowing growth in the emerging world, the U.S. is by comparison attractive. 

The returns confirm that. Including dividends paid, the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) is up 16.2 percent this year. SPY yields a piddly 1.98 percent, but investors have found comfort in U.S. equities amid tumult in other regions. 

There have been a few other developed market shirts worth wearing this year. Predictably, that has meant taking on more risk and elevated volatility, but in some cases, the ends have justified the means.

PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)
As the popularity of <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2804052/beyond-splv-low-volatility-etfs-to-survive-a-wild-market">low volatility ETFs has grown</a>, so have the chances that some of these funds can be overlooked. Arguably, that is what has happened to the PowerShares S&amp;P International Developed Low Volatility Portfolio.

IDLV debuted in January and what looked to be one of the ETF's advantages has turned into a disadvantage. That being minimal exposure to Europe. As European equities rallied, IDLV offered investors little in the way of being able to participate in said rally. Still, this fund, which is heavy on Japan and Canada, has jumped almost 12 percent since its debut. The 30-day SEC yield of 3.69 percent is not too shabby, either.

Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>)
If the U.S. is the cleanest of a bunch of dirty shirts on a global basis, then Norway is one of the cleaner European shirts. It is widely known that northern European countries have presented investors with far less risk than the PIIGS and Norway is no exception to that thesis. 

Backed by a strong balance sheet, an under-appreciated sovereign wealth fund and the fact that it is not a Eurozone member, Norway has been a beacon of light in Europe this year. The country <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2942117/go-north-with-europe-etfs#ixzz2B53b0H9M">also maintains an AAA credit rating</a>. NORW is up 13.5 percent year-to-date. If there is a black mark, it is this: NORW's volatility has been almost double that of SPY's.

Impressive is the fact that NORW has maintained its solid run over the past three months even in the face of falling oil prices. The ETF allocates 48 percent of its weight to the energy sector. Statoil (NYSE: <a class="ticker" href="/stock/sto#NYSE">STO</a>), Norway's state-run oil producer, accounts for almost 20 percent of the fund's weight.

Market Vectors Germany Small-Cap ETF (NYSE: <a class="ticker" href="/stock/gerj#NYSE">GERJ</a>)
And the award for best Germany ETF thus far in 2012 does not go to the iShares MSCI Germany Index Fund (NYSE: <a class="ticker" href="/stock/ewg#NYSE">EWG</a>). That honor goes to the Market Vectors Germany Small-Cap ETF, which has outpaced the far larger EWG by nearly 550 basis points year-to-date. 

GERJ is everything critics of small ETFs love to hate. It is small with its $5.4 million in AUM and is thinly traded. Average daily volume is just 420 shares and GERJ has not traded since Wednesday. Paying too much attention to external beauty, or lack thereof in this case, has meant ignoring what is on the inside with GERJ and that means a gain of over 25 percent. If German stocks stay in a eurozone leadership role, GERJ remains a preferred avenue for accessing the region's largest economy.

For more on Europe ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2942117/go-north-with-europe-etfs">here</a>.

Commodities

GERJ

NORW

Developed Market ETFs With Double-Digit Returns

Vanguard, the third-largest U.S. ETF issuer and largest gatherer of assets in 2012, has proven adept at entering niches of the ETF space previously dominated by rivals. From broad market funds to dividend ETFs, late entry has not hindered the Pennsylvania-based firms ascent to ETF royalty. 

Still, there is one area where Vanguard currently has no offerings, but the firm could be looking to change that. That area being low volatility ETFs. In a <a href="http://news.morningstar.com/articlenet/article.aspx?id=571936%E2%88%82=2">Morningstar interview</a> Vanguard's Chief Investment Officer-elect Tim Buckley said the firm is having a "hard look" at the minimum volatility strategy that has become wildly popular with investors.

"If you can minimize the volatility in some of these portfolios, especially in (investors') retirement years when they're drawing (their nest eggs) down, that could make a difference. That could make a big difference. So, I'd say more to come on that and definitely check back with us," Buckley told Morningstar. 

Since arriving on the scene in force last year, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2805967/the-definitive-guide-to-low-volatility-etfs">some low volatility ETFs</a> have proven to be prodigious gatherers of assets. The undisputed king of the low volatility ETF space is the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>). SPLV debuted in May 2011 and now has over $2.7 billion in assets under management.

Lower volatility stocks have performed at least as well as the market over the past 50 years with reduced risk, <a href="http://www.etftrends.com/2012/11/vanguard-mulls-low-volatility-etfs-as-category-thrives/?utm_source=twitterfeed&amp;utm_medium=twitter&amp;utm_campaign=Feed%3A+etftrends-feed+%28ETF+Trends%29">ETF Trends reported, citing Morningstar</a>. 

While inflows to low volatility ETFs (SPLV has raked in $1.7 billion this year, ETF trends reports, citing Index Universe data) prove investors like the concept of potentially gaining solid risk-adjusted returns, any new entrant to this space faces a tough road in terms of attracting assets.

PowerShares and iShares are the brands investors are most familiar with regarding low volatility products. In addition to SPLV, PowerShares issues the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>) and the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>). 

A new ETF from the firm, the PowerShares S&amp;P 500 High Dividend Portfolio (NYSE: <a class="ticker" href="/stock/sphd#NYSE">SPHD</a>) high dividends and low volatility under one umbrella. SPHD is just two weeks old and already has $6.3 million in AUM.

iShares, the world's largest ETF sponsor, has found successful with low volatility ETFs as well. The iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>) are each barely more than a year old and both have well over $500 million in AUM.

Even though Vanguard faces well-established competition in the "low vol" arena, the firm has been late to the game with competing products in the past only to emerge victorious. The prime example being the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>), which is two years younger than the rival iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>). Despite EEM's head start, VWO is about $18 billion larger in terms of assets.

For more on low volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2805967/the-definitive-guide-to-low-volatility-etfs">here</a>.

Vanguard Could Enter Low Vol ETF Fray

Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF issuer, said it expects to introduce the PowerShares S&amp;P 500 High Dividend Portfolio (NYSE: <a class="ticker" href="/stock/sphd#NYSE">SPHD</a>) on Thursday October 18. The new ETF, which will track the S&amp;P Low Volatility High Dividend index, is expected to be home to the 50 S&amp;P constituents that historically have provided high dividend yields with lower volatility, according to PowerShares.

"The PowerShares S&amp;P 500 High Dividend Portfolio (SPHD) combines two key objectives that are important to many investors today: an emphasis on high dividend equities with the well-documented benefits of low-volatility securities," said Ben Fulton, Invesco PowerShares managing director of global ETFs, in a statement. "The Fund's underlying Index is designed to perform well in absolute terms and on a risk-adjusted basis compared to the S&amp;P 500 Index, and had an average dividend yield of 4.51% as of Sept 30, 2012."

SPHD will join PowerShares' already successful lineup of low volatility products. The PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) is one of the pioneers of the "low vol" ETF space. SPLV debuted in May 2011 and has almost $2.5 billion in assets under management.

The PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>) debuted in January and now has $13.5 million in AUM while the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>), which also debuted in January, has $16.7 million in AUM.

SPHD's index is screened for the 75 securities with the highest dividend yields over the past 12 months and from those securities, selects the 50 securities with the lowest realized volatility for inclusion in the Underlying Index, according to the statement. The stocks with the highest yields receive the largest weights in the index, which is rebalanced semi-annually.

For more on volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2924661/what-about-high-betavolatility-etfs">here</a>.

Dividends

PowerShares to Introduce Low Vol High Dividend ETF

Until 2011, investors seeking refuge from topsy-turvy markets were forced to turn to known entities. Those being cash, high-grade government and corporate bonds and sectors such as consumer staples and utilities. 

These days, there are more low volatility choices than for investors to embrace and these new "low vol" plays come courtesy of the ETF world. Simply put, the number of ETFs advertised as low volatility funds <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/11/2113151/wild-market-are-minimum-volatility-etfs-proving-their-worth">has exploded since last year</a>. 

As a group, low volatility ETFs have had mixed success in terms of attracting assets under management. Some have thrived (one even topping the $2 billion AUM mark) while others <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/10/2001773/four-low-volatility-etfs-your-broker-forgot-to-mention">have toiled in anonymity</a>. 

Regardless of an ETF's popularity or obscurity, investors should do a little homework before running into any volatility fund. The Definitive Guide to Low Volatility ETFs is here to help.

PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)
The PowerShares S&amp;P 500 Low Volatility Portfolio is not that old (it debuted in May 2011), but the fund has quickly become the dominant name among low volatility ETFs. As of August 3, SPLV had almost $2.4 billion in assets under management. 

More important than size is the fact that SPLV is doing its job and that is providing investors with a credible alternative to a traditional S&amp;P 500 index ETF. In the past year, SPLV has outperformed the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) by 400 basis points. That type of performance differential mitigates the impact of SPLV's 0.25 percent expense ratio, which is by no means high, it is just high compared to funds like SPY.

SPLV is currently home to 98 stocks, though the fund can hold up to 100 stocks from the S&amp;P 500 Index with the lowest realized volatility over the past 12 months according to PowerShares. Not surprisingly, utilities and consumer staples combine for 60 percent of SPLV's sector weight.

PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>)
PowerShares did not rest on its laurels with SPLV. In an effort to duplicate that success in the emerging markets universe, the fourth-largest U.S. ETF sponsor introduced the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio in January.

EELV was not the first ETF to bring the low volatility/emerging markets combination to investors and that might explain why the fund has just $10.8 million in AUM. However, that small AUM total belies some important and positive facts about EELV. First, the fund is relatively inexpensive compared to other emerging markets ETFs with an expense ratio of just 0.29 percent. Second, EEMLV has gained 10.4 percent since its debut. That compares quite favorably with a gain of less than three percent for the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

Malaysia and South Africa combine for over 47 percent of EELV's country weight. Taiwan is the only other nation to receive a double-digit allocation.

PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>)
The PowerShares S&amp;P International Developed Low Volatility Portfolio also debuted in January and this fund has also struggled to attract assets. As of August 3, IDLV had just $8.1 million in AUM. However, as is the case with IDLV's emerging markets counterpart, EDLV, the AUM number belies IDLV's ability to generate alpha for investors.

Since its debut, IDLV has surged 9.2 percent and that is with a 43 percent allocation to beaten down Japanese equities. Arguably, IDLV's performance indicates the fund is a valid option for investors looking for exposure to Japan without committing to a Japan-specific fund. With an allocation of 16.4 percent, Canada is the only other country to receive a double-digit weight in IDLV. 

Other country weights include Singapore, New Zealand, the U.K. and Australia. IDLV also features a reasonable expense ratio of 0.25 percent.

EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
Maybe it is because HILO advertises itself as an emerging markets dividend play <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2408820/4-em-dividend-etfs-your-broker-forgot-to-mention-hilo-ediv-de">that fund leads a somewhat anonymous existence</a>. 

HILO's lack of popularity does not mean that it is not a fine ETF. The fund has been a solid performer this year and an index yield of almost 5.4 percent helps mute the impact of a pricy 0.85 percent expense ratio. "Additional risk criteria correlated to the MSCI Emerging Market Index limits concentration in any position to 5 percent and country exposure to a maximum of 5 positions," according to EGShares.

Brazil, South Africa, China and Malaysia are HILO's top country weights and the ETF pays homage to the typical low volatility sectors as telecom and utilities combine for almost 52 percent of the fund's weight.

iShares MSCI USA Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>)
Given SPLV's success, it is only logical that the fund would attract a couple of competitors. One of those rivals is the <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2804052/beyond-splv-low-volatility-etfs-to-survive-a-wild-market">sometimes forgotten</a> iShares MSCI USA Minimum Volatility Index Fund.

USMV came to market in October 2011 and now has $374.4 million in AUM. The iShares offering also boasts a paltry 0.15 percent expense ratio and a year-to-date gain of 10.5 percent. Home to almost 120 stocks, USMV's sector weightings are a little different than other low volatility ETFs. Translation: USMV is not excessively weighted to staples and utilities names.

Healthcare, staples, technology and consumer discretionary all receive double-digit weights in USMV while utilities are merely the fund's sixth-largest sector weight with an allocation of 8.6 percent.

iShares MSCI All Country World Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/acwv#NYSE">ACWV</a>)
The iShares MSCI All Country World Minimum Volatility Index Fund, which shares the same inception date as USMV, has proven to be even more popular than its U.S.-focused counterpart. With a sizable roster of 264 stocks, USMV has raked an impressive $453.2 million in AUM, making it one of the more successful new ETFs of the past year. 

While ACWV paints itself as an all country play, the U.S. accounts for 53 percent of this fund's weight. With a concentration of nearly 13 percent, Japan is the only country to receive a double-digit weight. 

ACWV proves the low volatility theme works as the fund has outpaced the iShares MSCI ACWI Index Index Fund (NASDAQ: <a class="ticker" href="/stock/acwi#NASDAQ">ACWI</a>) by nearly 200 basis points this year. Staples, health care, financials and consumer discretionary are ACWV's top-four country weights. Utilities come in sixth with a weight of 8.7 percent.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)
Just as SPLV is the king of low volatility ETFs with a domestic focus, EEMV can lay claim to being <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2391114/etf-showdown-low-beta-high-stakes-eelv-eemv-hilo">the king low volatility emerging markets funds</a>.

Not only has EEMV outpaced the rival EELV and HILO by significant margins this year, but this $298.7 million fund has also left the iShares MSCI Emerging Markets Index Fund and the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) in its wake. What makes EEMV's year-to-date performance all the more impressive is that the fund allocates almost 25 percent of its weight to financials, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2804289/etf-showdown-em-bank-battle">a volatile sector in developed and developing markets alike</a>.

Consumer staples and telecom names combine for another 26.5 percent of EEMV's weight. The fund's country weights are predictable in that Taiwan and South Korea, arguably the two most conservative emerging markets, are two of the fund's three largest country allocations. EEMV has an annual expense ratio of 0.25 percent.

iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>)
Just as EEMV is the "low vol" equivalent of one of the largest ETFs of any kind, in that case EEM, the iShares MSCI EAFE Minimum Volatility Index Fund has a traditional counterpart. The iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>) with $34.6 billion in AUM is also one of the 10 largest ETFs by assets on the market today.

By comparison, EFAV is small with just $73 million in AUM, but EFAV is 14 basis points cheaper than EFA. The former also keeps up a familiar trend: Low volatility funds outpacing their non-volatility counterparts in 2012. Year-to-date, EFAV has topped EFA by almost 240 basis points. 

The U.K. and Japan dominate EFAV's country lineup, combing for over 55 percent of the fund's weight. Five sectors – financials, staples, health care, industrials and telecom – receive double-digit weights in the fund.

Russell Dev ex-U.S. Low Volatility ETF (NYSE: <a class="ticker" href="/stock/xlvo#NYSE">XLVO</a>)
Just nine months old, the Russell Developed ex-U.S. Low Volatility ETF is worthy of a place in the low volatility ETF conversation. Minus fees and expenses, XLVO's 30-day SEC yield was a fair of 3.19 percent as of June 30, <a href="https://www.russelletfs.com/Products/XLVO_Overview.aspx">according to Russell data</a>.

XLVO is a bit more diverse at the country level than its developed world rivals on this list. Five countries – the U.K., Canada, Japan, Australia and Switzerland and receive double-digit weights. Be advised that XLVO does have some Eurozone exposure as Germany, France and the Netherlands combine for over 13 percent of XLVO's weight.

The $5.1 million ETF, which charges 0.25 percent per year, was home to 316 stocks as of July 31. XLVO's top-10 holdings represent just 20.1 percent of the fund's overall weight.

Russell 2000 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/slvy#NYSE">SLVY</a>)
There are multiple low volatility ETFs devoted to large cap U.S. stocks, developed world ex-U.S. stocks and emerging markets equities. However, the Russell 2000 Low Volatility ETF is the lone low volatility ETF devoted exclusively to small-caps. SLVY's 171 constituents have an average market cap of $1.35 billion. 

While volatility and beta are not the same thing, it is worth noting SLVY's beta against the Russell 3000 is 1.2. SLVY has $10 million in AUM and an annual expense ratio of 0.3 percent. To its credit, SLVY has slightly outperformed the iShares Russell 2000 Index Fund (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>).

Russell 1000 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/lvol#NYSE">LVOL</a>)
The Russell 1000 Low Volatility ETF is the largest of the Russell "low vol" lineup with almost $68.3 million in AUM. LVOL is typical of some of the other large-cap domestic funds highlighted here in that staples and utilities combine for over 38 percent of the fund's weight. Health care and producer durables also receive double-digit weights.

Home to 105 stocks, LVOL's top-10 holdings account for just 21.3 percent of the ETF's weight. That lineup includes familiar blue chips such as Dow components AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), Kraft (NASDAQ: <a class="ticker" href="/stock/kft#NASDAQ">KFT</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>). LVOL charges just 0.2 percent per year and has a beta of 0.89 against the Russell 3000.

Pre-Market Outlook

ACWI

LVOL

SLVY

XLVO

The Definitive Guide to Low Volatility ETFs

Intense global macroeconomic and headline risk have led the financial markets to turn on a dime in recent months. What appears to be increased volatility is a primary reason why so many investors may be flocking to sectors prized for low correlations and lack of volatility, such as consumer staples and utilities. 

Rising volatility also helps explain the success of some low volatility ETFs, such as the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>). Just over a year old, the ETF has nearly $2 billion in assets under management, and its success has <a href="http://www.benzinga.com/news/12/01/2263131/powershares-rolls-out-2-more-low-volatility-etfs">spawned the creation</a> of scores of other low volatility ETFs.

Investors looking for low volatility funds with international exposure have an expanding array of choices too - including the iShares MSCI EAFE Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/efav#NYSE">EFAV</a>) and the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>). Both funds earned Marketweight ratings from S&amp;P Capital IQ in a recent research note published by the firm.

S&amp;P Capital IQ Chief Equity Strategist Sam Stovall highlighted in the note that the S&amp;P 500 Index was down 0.4% in the one-year period ended May 2011, but had risen 15% over the three-year period. Meanwhile, the S&amp;P 500 Low Volatility Index, which consists of the 100 stocks in the broader Index with the lowest 12-month standard deviations, was up 8.4% and 18% in the same respective time periods, according to the note.

"When we look overseas at the S&amp;P Developed ex- U.S. &amp; South Korea LargeMidCap Index, we see a similar pattern. This broad index was down 20% in the one-year period ended May 2012 and up just 4.2% in the three-year period. Meanwhile, the S&amp;P BMI International Developed Low Volatility Index, which consists of the 200 less volatile stocks in the broad index, was down just 7.2% and up 9.2%, respectively," S&amp;P Capital IQ said.

The PowerShares S&amp;P International Developed Low Volatility Portfolio debuted in January and charges 0.25 percent per year, with $5.1 million in AUM. The fund is home to 203 stocks with consumer staples, financials and industrials leading the way at the sector level. Combined, those three groups account for 58% of its sector weight. 

The ETF offers exposure to 10 countries, all of which are developed markets, but that lineup is dominated by Japan with an allocation of 43.2 percent and Canada with a weight of 16.5 percent. Other countries represented include Singapore, New Zealand and the U.K.

The iShares MSCI EAFE Minimum Volatility Index Fund debuted last October and is slightly cheaper than its PowerShares rival with fees of 0.2 percent per year. The ETF has $50.1 million in AUM and is home to 174 stocks. Five sectors – staples, financials, health care, industrials and telecommunications – receive double-digit allocations within the fund. 

The ETF features exposure to 20 countries, but that lineup is dominated by the U.K., Japan, and Switzerland - the trio combines for two-thirds of EFAV's weight. The fund features a 6.83% 30-day SEC yield, according to iShares data.

For more on low volatility ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2505485/checking-in-turn-down-the-vol-lvol-splv">here</a>.

Topics

Analyst Ratings

General

Global Exposure The Low Vol Way (EFAV, IDLV)

Looking at the year-to-date returns for some of the largest emerging markets ETFs, it's easy to see how some investors might perceive the current state of affairs as encouraging or compelling enough to throw money at some of these funds. After all, the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>), the largest of all emerging markets funds, is up 12.6% year-to-date. 

And despite assorted macroeconomic headwinds, the iShares MSCI Brazil Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>) and the iShares FTSE China 25 Index Fund (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>) are still in the green through the first quarter. Well, the bulk of those gains were accrued in the first seven weeks of the year. Late February and essentially all of March have brought some glum activity for emerging markets ETFs.

That begs the question: Is now the time to turn to lower volatility options in the EM ETF universe? If the answer is "yes" then one interesting option is the newly minted PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>). EELV <a href="http://www.benzinga.com/news/12/01/2263131/powershares-rolls-out-2-more-low-volatility-etfs">debuted in mid-January</a> along with a developed markets equivalent, the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>).

Performance-wise, EELV has been no slouch since its debut, gaining almost 8%, though its volume (less than 4,300 shares per day average) and assets under management ($5.4 million) aren't yet robust enough to crown the ETF an outright success.

EELV tracks an index that includes all publicly listed equity securities with float-adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. 

The fund's current country composition includes a 24.2% allocation to Malaysia, a 17.3% weight to South Africa and a 10.35% weight to Taiwan. 

As is the case with other low volatility ETFs, EELV does feature sizable allocations to the consumer staples and utilities sectors. Those two sectors combine for 30% of the ETF's weight, but financials are by far the largest sector weight at almost 27%. Industrials and telecom names receive weights of just below 10% each.

Beyond the obvious of knowing what one is getting into at the sector and country levels, the most important questions regarding an ETF such as the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio are "Does the ETF do its job?" and "Does it provide shelter from the storm while keeping me in the emerging market game?"

The statistics indicate the answer is "yes." Since the start of March, EELV is down 1.1%. That performance doesn't deserve a gold star, but it's a lot better than 3.6% loss for VWO or the 3.77% decline for the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

Of course the rub with low volatility ETFs is that investors sacrifice upside when the market is embracing risk. That explains why the PowerShares S&amp;P 500 Low Volatility ETF (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), the king of low volatility ETFs, is getting killed by the S&amp;P 500 this year, but when it comes to emerging markets, low volatility might be the best course action at the moment.

Under The Hood: Is Now The Time? (EELV, SPLV, VWO)

BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares and Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares, the largest and fourth-largest U.S. ETF issuers, respectively, will continue 2012's brisk pace of <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2310295/more-me-too-etfs-from-ishares-debut-today">new ETF introductions</a> on Friday with new emerging markets and volatilty funds.

iShares will introduce the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE), which will track the iShares Emerging Markets Dividend Index. As of February 6, countries in the index included Brazil, Chile, China, the Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Morocco, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey. 

DVYE will have an expense ratio of 0.49% and could be a possible rival to the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>), which has proven <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2362835/wisdomtree-emerging-markets-equity-income-etf-tops-3b-in-aum-">quite popular with investors</a>.

iShares will also roll out the iShares Asia/Pacifc Dividend 30 Index Fund (NYSE: DVYA), which will track the Dow Jones Asia/Pacific Dividend 30 Index. The index tracks companies based in Australia, Hong Kong, Japan, New Zealand and Singapore. DVYA will also have an expense ratio 0.49%.

Prior to Friday, iShares had introduced 21 new ETFs this year, according to the firm's Web site, making it the most prolific issuer of new ETFs in 2012.

PowerShares will add to its lineup of volatility funds with the PowerShares S&amp;P Emerging Markets High Beta Portfolio (NYSE: EEHB) and the IDHB PowerShares S&amp;P International Developed High Beta Portfolio (NYSE: IDHB). EEHB is the "high vol" equivalent of the PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>) launched in January. IDHB has a "low vol" cousin in the PowerShares S&amp;P International Developed Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/idlv#NYSE">IDLV</a>), which also debuted in January.

PowerShares says its suite of high beta and low volatility now has over $1.3 billion in assets under management. The bulk of those assets are found with the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), an ETF that proved to be one of 2011's <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2335968/grandpas-2012-etf-portfolio">most successful new funds</a>.

At the end of January, PowerShares had 120 ETFs with $51.4 billion in assets under management, according to data from the ETF Industry Association.

New iShares, PowerShares ETFs Due Out Friday (SPLV, DVYA, DVYE)

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Invesco International Developed Low Volatility ETF declares quarterly distribution of $0.2284

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Invesco International Developed Low Volatility ETF declares quarterly distribution of $0.1928

Q4 2023 - International Equity Review And Outlook

Invesco International Developed Low Volatility ETF declares quarterly distribution of $0.2049