- CDC, the VictoryShares US EQ Income Enhanced Volatility Wtd ETF, is a volatility-weighted ETF that fell just 1% in March 2020.
- It accomplished this by correctly anticipating that an 8% drop in February would extend into March, all by following a rules-based methodology.
- Low-volatility ETFs often significantly underperform during bull markets, but based on its composition, I don't believe this will happen with CDC.
- I'm bullish on CDC today, but am cautious because when the fund reconstitutes next in September, it's likely to look very different.
For further details see:
CDC: Like Medicine For Market Corrections