iShares Edge S&P 500 Minimum Volatility

ETF description

This ETF is designed to give investors exposure to a selection of companies from the S&P 500 index with a focus on minimizing volatility. The goal is to track the performance of companies that tend to have more stable stock prices compared to others in the broader index. By investing in companies with lower price fluctuations, the ETF aims to reduce the ups and downs typically associated with stock market investments.

This ETF may appeal to investors who want exposure to the U.S. stock market but are more cautious about the potential risks of market volatility. It could be suitable for those looking for a way to invest in equities while aiming for a smoother ride during periods of market turbulence. While this approach can potentially reduce risk, it’s important to note that the ETF’s value can still fluctuate, as it remains tied to the performance of the companies it tracks.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Edge S&P 500 Minimum Volatility index provides investors with a strategic approach to reducing portfolio risk while maintaining exposure to large‑cap U.S. equities. By focusing on the least volatile stocks within the S&P 500, the index aims to deliver more stable returns, making it an attractive option for those seeking a defensive investment strategy. The index captures the performance of low volatility stocks, offering a valuable tool for managing risk in an equity portfolio.