SIX: State Street Global Advisors Expands Low Volatility ETF Range

State Street Global Advisors (SSgA) has expanded its low volatility ETF range, with the launch of the SPDR EURO STOXX Low Volatility UCITS ETF, which listed on SIX today. The new ETF will track the EURO STOXX Low Risk Weighted 100 Index and …

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Rochus Appert, Head of Intermediary Business at SPDR ETF for  SSgA in Switzerland

joins SSgA’s low volatility ETF range which includes the SPDR S&P 500 Low Volatility UCITS ETF.
Investors are finding that alternatively weighted indices are one of the most flexible ways to access less risky and less volatile segments of the equity markets. Low volatility has become one of the most followed advanced beta strategies, and stocks with lower volatility tend to produce greater risk adjusted returns over time.
Low volatility has coincided with an increase in so-called outcome-oriented investing, where the emphasis has shifted from targeting relative outperformance towards creating portfolios that have a higher likelihood of meeting investors’ future needs. For many investors, low volatility equities may prove to be part of the solution as they seek to offer an attractive combination of upside participation and potential downside protection.
Rochus Appert, Head of Intermediary Business at SPDR ETF for  SSgA in Switzerland, commented, “Investors are looking at ways to limit downside losses in volatile markets. Lower volatility equity investing appeals to those who are less concerned about short-term tracking error relative to the broad market and more focused on lower risk and drawdown characteristics.”
“The EURO STOXX Low Risk Weighted 100 Index selects those 100 stocks in the EURO STOXX Index which have shown the lowest volatility over the past year, offering market participants Eurozone exposure with reduced portfolio volatility through a transparent and easily understandable index concept,” said Hartmut Graf, chief executive officer, STOXX Limited.
There are now 56 SPDR ETFs available across Europe. This launch follows the recent listing of the SPDR Barclays 0-5 Year Sterling Corporate Bond UCITS ETF.

Name: SPDR EURO STOXX Low Volatility UCITS ETF
Ticker code – SIX: ELOW
ISIN: IE00BFTWP510
TER: 0.30%
Source: ETFWorld.co.uk – State Street Global Advisors