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In A Volatile Market, Low-Volatility Stocks Can Shine

|Includes: Aflac Incorporated (AFL), BCE, BRK.B, DOX, HON, KO, L, PEP, PG, RSG
Summary

Mark Hulbert has an interesting idea.

He thinks that the low-volatility factor may make a comeback.

I'm not sure I agree, but it's definitely worth a look.

From Hulbert's article on Barron's

Here are the 10 lowest-volatility stocks that are also recommended by at least one of the top-performing advisors monitored by the Hulbert Financial Digest. (The lowest-volatility stocks are those with the lowest monthly standard deviations over the trailing 24 months, according to a website created by Haugen.)

· Aflac (ticker: AFL)
· Amdocs (DOX)
· BCE (BCE)
· Berkshire Hathaway (BRK.B)
· Coca-Cola (KO)
· Honeywell International (HON)
· Loews (L)
· PepsiCo (PEP)
· Republic Services (RSG)
· Procter & Gamble (PG)

Low Volatility ETFs

If you're not into the whole stock-picking thing, there are ETFs that do that heavy lifting for you. Consider:

LOW VOL PowerShares S&P 500 Low Vol SPLV
LOW VOL iShares Edge MSCI Min Vol Global ACWV
LOW VOL PowerShares S&P EM Low Vol EELV
LOW VOL PowerShares S&P DM Low Vol IDLV

Check out these names, and think about whether low volatility is likely to make a comeback. This factor has not been working for quite some time, because market volatility has been so tame for so long.

I offer several factor-based trading strategies on SA MarketPlace, although I don't offer a low-vol version. Check it out on SA, and on my website Home 2017 | Zen Investor

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in splv over the next 72 hours.