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State Street launches low volatility ETF

market_volatilityState Street Global Advisors has launched a low volatility Ucits ETF focusing on equity securities in developed markets.

The fund tracks the Stoxx Global Low Risk Weighted Diversified 200 index. According to the firm, this benchmark provides a “broad yet liquid” representation of the world’s most developed markets.

State Street regional head of SDPR [Standard & Poor's Depositary Receipts] ETFs, Matteo Andreetto, said: “Market volatility has become a big challenge for investors, especially during the current pandemic.”

The SPDR Stoxx Global Low Volatility Ucits ETF has been set up with the aim of attracting investors seeking to build up defensiveness in their portfolios whilst maintaining upside potential.

First listing on Euronext, Amsterdam on Monday, the strategy will go live on the London Stock Exchange on August 25. 

ETF strategist Ryan Reardon added: “While economic data has recovered from the lows experienced earlier this year, the persistent uncertainty in equity prices makes low volatility ETFs increasingly relevant."

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