Performance Chasing Is Alive and Well in Low Vol ETFs

The video discusses the current state of the S&P 500, highlighting its lack of volatility and how investors have reacted by engaging in performance chasing, particularly in low volatility ETFs. It examines the trends in both U.S. and emerging markets, noting the significant inflows and outflows in these areas. The video also delves into the psychology behind performance chasing, explaining that despite mathematical advice to hold index funds, investors often seek alpha through active ETF management.

What factors contributed to the initial success of low volatility ETFs at the beginning of the year?

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How did the performance of low volatility ETFs change in August compared to the S&P 500?

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What trends have been observed in emerging markets ETFs compared to US ETFs?

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What evidence suggests that performance chasing is a common behavior among investors?

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In what ways do investors utilize ETFs to achieve alpha?

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