The Clap In August 2022, investors’ demand for low-volatility ETFs increased significantly, capitalizing on low valuations.
The Deets The Invesco NASDAQ 100 ETF (QQQM), Invesco S&P500 Low Volatility ETF (SPLV), and Invesco Solar ETF (TAN) were among the most popular ETFs in Invesco’s suite, recording high levels of net inflows.
What these ETFs track The QQQM & the SPLV consist of large-cap companies in the US market, also known as blue chips. These companies include Apple, ExxonMobil, IBM, GE, etc., and help label the funds as some of the safest in the equity world. These funds help investors position themselves in a bearish market.
Increased interest in clean energy helped influence the rise in popularity of the Invesco Solar ETF (TAN). This fund is useful for investors who believe solar energy will be the most prevalent energy source in the long run.
What this Shows The increasing popularity of the low volatility ETFs signals that investors are bearish about the market, and are looking to position themselves to outperform the market in case of decline.