ETF Gains in 2024 Rival Nasdaq with Less Risk

In 2024, a low-volatility exchange-traded fund (ETF) has shown impressive performance, closely mirroring the gains of the tech-heavy Nasdaq Composite while maintaining lower volatility. This ETF, known as SPLV, tracks the S&P 500 Low Volatility Index, which comprises 100 stocks with the least realized volatility over the past year. Notably, SPLV reached an intraday all-time high recently, indicating strong investor interest. The ETF's performance has been particularly resilient during market fluctuations. For instance, during the significant market sell-off on August 5, the Nasdaq experienced a 3.4% decline, while SPLV only dropped 2.2%. Over the past month, SPLV has recorded a 5.7% gain, slightly outperforming the Nasdaq's 5.5% increase, showcasing its stability in turbulent times. Top holdings in the ETF include well-known companies such as Berkshire Hathaway, Coca-Cola, and T-Mobile, which contribute to its robust performance. The ETF's expense ratio is relatively low at 0.25%, making it an attractive option for investors seeking to minimize costs while maximizing returns. As September unfolds, the broader market has faced challenges, with major indices like the S&P 500 and Dow Jones experiencing their worst sessions since early August. The CBOE Volatility Index has also risen, indicating increased market uncertainty. Given the upcoming 2024 election, SPLV may serve as a strategic investment for those looking to navigate potential volatility in the market.