5 Best Low Volatility ETFs To Buy

3. SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV)

5-Year Share Price Performance as of April 4: 51.17%

SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV) aims to track the performance of the SSGA US Large Cap Low Volatility Index. This index includes a subset of the largest 1000 US stocks by market capitalization, utilizing a rules-based approach to increase exposure to low volatility stocks. The fund was established on February 20, 2013. As of April 5, 2024, SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV)’s assets under management amounted to $703.81 million, along with a portfolio of 162 stocks and a gross expense ratio of 0.12%. It is one of the best low volatility ETFs to buy. 

PepsiCo, Inc. (NASDAQ:PEP) is the top holding of SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV). On April 3, Argus downgraded PepsiCo, Inc. (NASDAQ:PEP) from Buy to Hold, citing concerns about potential revenue growth slowdown due to price increases. Analyst John Staszak highlighted the impact of consumers favoring dining out over meals at home and the potential influence of weight-loss drugs on consumer spending habits. However, Staszak remains optimistic about PepsiCo’s long-term prospects, citing strengths in digital operations, distribution efficiency, brand power, and supply chain improvements. 

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on PepsiCo, Inc. (NASDAQ:PEP), compared to 65 funds in the last quarter. 

Aristotle Atlantic Core Equity Strategy stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its fourth quarter 2023 investor letter:

“We sold PepsiCo, Inc. (NASDAQ:PEP) based on our belief that the inflation and interest rate cycle has peaked, and the company may have difficulty maintaining the recent organic growth trends which were driven mainly by price increases. Furthermore, the market appears to be shifting away from defensive names and into a more cyclical positioning which could cause PepsiCo to lag.”