Stan Wong
iShares Edge MSCI Min Vol USA ETF
USMV-N
TOP PICK
Feb 27, 2020
Safer part of the barbell approach. US equities that have lower volatility than the broader market. Has outperformed the S&P, with lower volatility. With the economic cycle maturing, you have to have an allocation to safer stuff, whether defensive growth or minimum volatility. Yield is 1.96%.
US low volatility ETF? He likes the iShares MSCI USA Minimum Volatility (USMN-N). Low volatility has outperformed recently, but only because volatility has gone up. If we have an economy that accelerates in the US, you may want to own a more growthier name, which may not be low volatility.
For late cycle. Basket of US stocks with low volatility characteristics. Global cycle is maturing, economic uncertainties. Lower beta. Waste Management, Coca-Cola, Visa, Pfizer, Macdonald's.
ZLU is a top choice ETF of the US market -- he believes it is not currency hedged to the CAD dollar. He likes the lower volatility holdings. Good for conservative investors. He also likes the USMV ETF.
(A Top Pick Jul 04/19, Down 1%) Lower volatility strategy by about 20% than the broader S&P, for times like today, but with the same returns (about 10% annualized).
(A Top Pick Feb 27/20, Up 9%) Does well in tougher environments. But the market's strong right now. When we get into trouble again, he may look at the name once more.
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