Boomers Fueling a Boom In Low-Volatility ETFs
Soon-to-be-retirees want the upside of equities without the swings.
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Baby boomers worrying about whether they'll have enough cash to bankroll their retirements are one reason low-volatility ETFs are, well, booming, according to Dan Draper, head of Invesco PowerShares, which runs one of the biggest such funds.
The PowerShares S&P 500 Low Volatility ETF has grown by about $1 billion this year and beaten the S&P 500 Index by more than two percentage points. The iShares Edge MSCI Minimum Volatility USA ETF has taken in $5.3 billion—that's more than any other equity-focused ETF (and second to the giant SPDR Gold Shares fund among all ETFs).