The best Low Volatility ETFs
How to invest in low-volatility ETFs
How do I invest in the low volatility factor?
Stocks with low volatility tend to yield an excess return compared to the risk taken. This research-based observation is referred to as the low-volatility factor.There are various possible explanations for this: For example, shares with low volatility may be perceived as less rewarding by investors as they are associated with less risk. Another theory suggests that investors generally overestimate their ability to forecast. For particularly volatile stocks, there is a greater disagreement between investors, which should lead to higher volatility and lower returns.
This factor strategy can also be implemented by means of an index. In this investment guide, you will find all available worldwide low volatility ETFs. Currently, there are 8 ETFs available.
MSCI World Minimum Volatility performance
1 month: -3.26%
1 year: 18.38%
3 years: 18.27%
5 years: 34.78%
Low-Volatility ETFs in comparison
The most important factors at a glance
When choosing a low-volatility ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all low-volatility ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
Compare all low-volatility ETFs in detail
Compare all low-volatility ETFs in a chart
| Provider ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc)IE00B8FHGS14 | 2,635 | 0.30% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI World Minimum Volatility UCITS ETF 1CIE00BL25JN58 | 860 | 0.25% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares Edge MSCI World Minimum Volatility ESG UCITS ETF (Acc)IE00BKVL7778 | 410 | 0.30% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (IE) Factor MSCI World Minimum Volatility ESG Leaders UCITS ETF (USA) A-accIE000EJ2EHO7 | 267 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI World Minimum Volatility ESG UCITS ETF 1CIE0008YN0OY8 | 21 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist)IE00BMCZLJ20 | 13 | 0.30% p.a. | Distributing | Ireland | Optimized sampling | |
| Invesco Quantitative Strategies Global Equity Low Volatility Low Carbon UCITS ETF AccIE000N42HDP2 | 4 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI World Minimum Volatility Screened Factor UCITS ETF UCITS ETF AccIE0001DKJVC2 | - | 0.25% p.a. | Accumulating | Ireland | Full replication |
Source: justETF.com; As of 25.12.24
Return comparison of all low-volatility ETFs
The table shows the returns of all low-volatility ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
| ETF | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| Invesco Quantitative Strategies Global Equity Low Volatility Low Carbon UCITS ETF Acc | 5.59% | 8.01% | 15.76% | 29.86% | - | |
| iShares Edge MSCI World Minimum Volatility ESG UCITS ETF (Acc) | 6.15% | 7.09% | 15.81% | 24.57% | 29.70% | |
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist) | 5.51% | 6.30% | 16.18% | 23.90% | 28.95% | |
| Xtrackers MSCI World Minimum Volatility UCITS ETF 1C | 5.45% | 6.26% | 16.09% | 23.88% | 29.02% | |
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) | 5.44% | 6.27% | 16.03% | 23.83% | 28.88% | |
| Xtrackers MSCI World Minimum Volatility ESG UCITS ETF 1C | 5.03% | 5.93% | 14.12% | 21.79% | - | |
| Amundi MSCI World Minimum Volatility Screened Factor UCITS ETF UCITS ETF Acc | 6.05% | - | - | - | - | |
| UBS ETF (IE) Factor MSCI World Minimum Volatility ESG Leaders UCITS ETF (USA) A-acc | 5.12% | 5.66% | - | - | - |
| ETF | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| Invesco Quantitative Strategies Global Equity Low Volatility Low Carbon UCITS ETF Acc | 26.63% | 9.66% | - | - | - | |
| Xtrackers MSCI World Minimum Volatility UCITS ETF 1C | 22.00% | 4.05% | -4.21% | 23.71% | -6.08% | |
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Acc) | 21.93% | 4.04% | -4.29% | 23.68% | -6.05% | |
| iShares Edge MSCI World Minimum Volatility UCITS ETF USD (Dist) | 21.90% | 4.03% | -4.23% | 23.62% | - | |
| iShares Edge MSCI World Minimum Volatility ESG UCITS ETF (Acc) | 21.85% | 6.25% | -5.72% | 25.58% | - | |
| Xtrackers MSCI World Minimum Volatility ESG UCITS ETF 1C | 19.96% | - | - | - | - | |
| Amundi MSCI World Minimum Volatility Screened Factor UCITS ETF UCITS ETF Acc | - | - | - | - | - | |
| UBS ETF (IE) Factor MSCI World Minimum Volatility ESG Leaders UCITS ETF (USA) A-acc | - | - | - | - | - |
Source: justETF.com; As of 30.11.24; Calculations in EUR including dividends