What Market Upheaval Means for Low Vol ETFs

The video discusses the impact of recent market upheaval on low volatility ETFs, focusing on SPLV and USMV funds. Despite a market slump, these funds provided some protection, falling less than the S&P 500. However, February saw significant outflows, particularly from BlackRock's fund. The discussion also covers the potential effects of rising interest rates on these funds, given their exposure to bond proxy sectors like utilities and consumer staples.

What is the primary focus of low volatility ETFs during market upheavals?

• To track the S&P 500

• To increase market volatility

• To provide protection

• To maximize returns

How did the SPLV and USMV funds perform compared to the S&P 500 during the recent market upheaval?

• They outperformed the S&P 500

• They performed exactly the same as the S&P 500

• They had no change in performance

• They underperformed the S&P 500

What was the percentage drop of the SPLV and USMV funds in the five-day period ending February 9th?

• 6.0%

• 3.5%

• 4.6%

• 5.1%

What significant financial movement was observed in low volatility funds in February?

• Strong outflows

• No significant movement

• Equal inflows and outflows

• Strong inflows

Which sectors does SPLV have significant exposure to, making it sensitive to rising interest rates?

• Energy and Materials

• Financials and Industrials

• Utilities and Consumer Staples

• Technology and Healthcare