Traders Ditch Defensive Quant ETFs as 2020 Turmoil Drags On
- Minimum-volatility funds on pace for eighth month of outflows
- March meltdown sparked closer look at factor’s performance
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U.S. stocks are enduring another tough day, but if the past eight months are a guide, it will do little to revive the fortunes of a trade pledging protection from exactly this kind of turmoil.
Exchange-traded funds following a low-volatility strategy are relentlessly bleeding cash this year, and have become the least-loved in the $1 trillion world of smart beta. More than $1 billion has been pulled from such ETFs in October, which is set to be the eighth-consecutive month of outflows.