“Low Vol” ETF Inflows Underscore Rally’s Risk-Off Nature

Low volatility ETFs also continue to show their mettle at the emerging markets level. The iShares MSCI Emerging Markets Indx (NYSEARCA:EEM) is down 4.6 percent year-to-date. Compared to that, the 0.2 percent loss for both the iShares Inc. (NYSEARCA:EEMV) and the PowerShares Exchange-Traded Fund Trust II (NYSEARCA:EELV) looks pretty good.

EEMV now has almost $1.8 billion in AUM, up from $1.6 billion in late February. EELV has attracted $40.2 million in new capital this year, bringing its AUM total to $129.2 million.

Like their U.S. equivalents, EELV and EEMV are heavy on conservative sectors. Staples, telecom and utilities combine for over a third of EELV’s weight. Same goes for EEMV, indicating that regardless of where investors put money to work this year, U.S. or emerging markets, low beta/minimum volatility is a preferred asset allocation strategy.

This article was originally written by The ETF Professor, and posted on Benzinga.