September has indeed been a tumultuous month, which has brought additional challenges to the big tech industry. But one low-volatility ETF is still betting big.
Alliance Bernstein is the force behind the AB US Low Volatility Equity ETF. Its top three holdings include large-cap winners, according to FactSet Microsoft, apple and letter.
“Tech touches everything we do in most aspects of our lives, but there are other industries that play a role,” Noel Archard, the firm’s global head of ETFs and investor solutions, told CNBC’s “ETF Edge” this week. “So , we continue to see interest in a broad range of investments.”
For comparison, FactSet lists Invesco Low Volatility ETF As traditionally more stable stocks: Berkshire Hathaway, Coca Cola and visa.
Archard points out that there is still a place for historically less volatile stocks, such as consumer staples and financial condition. He sees them as “bumper bars” that can help reduce risk.
For example, FactSet shows that Alliance Bernstein’s Low Volatility ETF also includes exposure to the following names: Procter & Gamble and Feisel.
“You forget about volatility until it shows up, and then all of a sudden it becomes very important,” Archard said.
As of Wednesday’s close, the AB US Low Volatility ETF was up 16% year to date.
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