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September has been a tumultuous month, adding complexity to the Big Tech trade. However, one low-volatility ETF remains optimistic about this sector.
Alliance Bernstein is the force behind the AB US Low Volatility Equity ETF. Its top three holdings, according to FactSet, include tech giants like Microsoft, Apple, and Alphabet.
“Technology is pervasive in our daily lives, but there are other industries to consider,” stated Noel Archard, the firm’s global head of ETFs and investor solutions, on CNBC’s “ETF Edge” this week. “We continue to see significant interest in broad investing.”
Comparatively, Invesco’s Low Volatility ETF features stable Stocks like Berkshire-Hathaway, Coca-Cola, and Visa as its top holdings.
Archard highlights the importance of historically less volatile sectors such as consumer staples and financials as “bumpers” to help manage risk.
For instance, Alliance Bernstein’s low-volatility ETF also includes exposure to companies like Procter & Gamble and Fiserv.
“It’s easy to overlook volatility until it arises, then it becomes a prominent concern,” Archard remarked.
The AB US Low Volatility ETF has seen a 16% increase in value so far this year as of Wednesday’s closing.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
