As September unfolds, the financial markets are experiencing their usual volatility. This presents a new set of challenges for the Big Tech sector, making investors wary of their positions. Amidst all this, one low-volatility ETF is still making big bets on the Big Tech trade.
Alliance Bernstein is the mastermind behind the AB US Low Volatility Equity ETF, a unique investment vehicle that is designed to thrive in turbulent times. This ETF is different from others in its category, as it focuses on low-volatility stocks while still heavily investing in Big Tech giants like Microsoft, Apple, and Alphabet.
Noel Archard, the global head of ETFs and investor solutions at Alliance Bernstein, believes that while technology stocks dominate the market, there is still room for other industries to shine. He emphasizes the importance of investing broadly to spread out risk. The AB US Low Volatility ETF boasts holdings not only in tech giants but also in consumer staples and financial companies like Procter & Gamble and Fiserv.
Archard refers to consumer staples and financials as “bumpers” that can cushion the impact of market volatility. By including traditionally stable stocks like Berkshire-Hathaway, Coca-Cola, and Visa in its portfolio, the AB US Low Volatility ETF ensures that investors are protected against sudden market swings. This strategic mix of stocks has proven to be effective in mitigating risk.
In a market where volatility can catch investors off guard, the AB US Low Volatility ETF has delivered impressive returns. As of Wednesday’s close, the ETF is up 16% year-to-date, outperforming its peers. Investors looking for a safe haven amidst market uncertainties are turning to low-volatility ETFs like this one to weather the storm. With its unique approach to investing and diversified holdings, the AB US Low Volatility ETF continues to be a top choice for risk-averse investors in today’s volatile market.