September appears to be living up to its reputation as a volatile month, creating more challenges for big tech trading. But one low-volatility fund is still betting big.
Alliance Bernstein is the company behind the AB US Low Volatility Equity ETF. Its top three holdings, according to FactSet, include large-cap winning companies. Microsoft, apple and alphabet.
“Technology impacts everything we do in most aspects of our lives, but there are other industries that play a role in that,” Noel Archard, the firm’s head of ETFs and investor solutions, told CNBC’s “ETF Edge” this week. “So we continue to see a lot of interest in investing broadly.”
For comparison, FactSet lists the top holdings for: Invesco Low Volatility ETF As more traditionally stable stocks: Berkshire Hathaway, coca cola and Visa.
Archard points out that there is still a place for historically less volatile stocks such as basic consumer goods and FinanceHe sees them as “bumpers” that can help mitigate risks.
For example, FactSet notes that Alliance Bernstein's low-volatility ETF also includes exposure in names including Procter & Gamble and Viserv.
“You forget about the volatility until it comes up, and then suddenly it's the center of attention,” Archard said.
The AB US Low Volatility ETF is up 16% so far this year as of Wednesday's close.
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