economy
This fund delivers income and protects from volatility. It's also rated 5 stars by Morningstar
The Franklin International Low Volatility High Dividend Index ETF looks to provide calm amid volatility. Here's how it works and where it's investing.
TL;DR
- Low volatility funds, like the Franklin International Low Volatility High Dividend Index ETF (LVHI), are gaining traction among investors seeking stability in turbulent markets.
- LVHI offers a 3.35% 30-day SEC yield and a 0.40% expense ratio, and has outperformed the S&P 500 year-to-date.
- The fund achieves low volatility through international diversification and by screening for stocks with high dividends and low price/earnings volatility.
- Overweight positions in energy, consumer staples, and utilities are characteristic of the fund's current holdings, which perform well in turbulent times.
- A domestic counterpart, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD), also offers outperformance and serves as a conservative core holding.