MSGS - XSLV: Not The Best Small-Cap Low-Volatility ETF
2025-01-07 23:55:12 ET
Summary
- Invesco S&P SmallCap Low Volatility ETF targets low-volatility small-cap stocks, focusing on financials, real estate, and industrials.
- XSLV has underperformed its parent index, S&P 600 since inception, despite outperforming it between 2013 and 2020.
- Lower volatility doesn’t seem to translate into a lower risk in drawdown, and XSLV has lagged three of its competitors since April 2020.
- SMLV appears more compelling in the small-cap low-volatility ETF category due to its superior performance and lower expense ratio.
XSLV strategy
Invesco S&P SmallCap Low Volatility ETF ( XSLV ) was launched on 02/15/2013 and tracks the S&P SmallCap 600® Low Volatility Index. XSLV has a portfolio of 120 stocks, a 30-day SEC yield of 2.67% and a net expense ratio of 0.25%....
XSLV: Not The Best Small-Cap Low-Volatility ETF