PowerShares S&P 500 Low Volatility Fund
If you’re looking for low volatility, the PowerShares S&P 500 Low Volatility Portfolio (SPLV) — as advertised — offers just what you’re looking for. This exchange-traded fund is based on the S&P 500 Low Volatility Index.
The underlying index behind SPLV is comprised of 100 equities in the benchmark S&P 500 with the lowest volatility, as measured by standard deviation of the security’s daily price returns over the prior year.
With over $4.7 billion in assets, SPLV is the largest fund of this kind on Wall Street and hardly a fad. Top holdings right now include Johnson & Johnson (JNJ), General Mills (GIS), Clorox (CLX) and other boring but stable blue chips.
Certainly not sexy … but if you’re looking for a defensive investment, SPLV has a lot to offer.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.