Minimize Volatility This Election Season With ETFs
Zacks Investment Research | Sep 25, 2020 03:22AM ET
As the U.S. Presidential elections are just around a month away, investors have started prepping their portfolios. In this regard, investors need to prepare for heightened volatility in the broader equities space.
This election year could be worse keeping in mind the aggravating coronavirus pandemic. Meanwhile, there is uncertainty regarding the introduction of a coronavirus vaccine. Going by sources, President Trump’s administration is believed to be building pressure on getting a vaccine approved before the elections in November. Meanwhile, the FDA has expressed intentions of not compromising with the vaccine’s quality, safety and efficacy standards when it comes to its decision of approval.
Also, according to some sources, the FDA is considering new coronavirus vaccine guidelines which can result in a vaccine authorization after Election Day. Meanwhile, Dr. Anthony Fauci, leading infectious disease expert, recently commented that a "large proportion" of the United States will not receive the vaccine in 2020, per a CNN report.
Going on, there are other factors as well which are causing increased volatility and market turbulences in September, which is historically considered the worst month for the stock market. The aggravating coronavirus outbreak has caught investors’ attention, making them increasingly apprehensive about another round of lockdowns. Investors are also concerned about the uncertainty surrounding additional U.S. fiscal stimulus package which shall be an absolute necessity for economic recovery. Furthermore, a report that showed global banks moved allegedly illicit funds over the past two decades also contributed to investors’ growing concerns and market sell-offs, according to a CNBC article.
h3 ETFs to Fight the Volatility/h3Against this backdrop, investors can adopt the following ETF strategies:
h3 Take Shelter in Minimum-Volatility ETFs/h3Low-volatility products could be intriguing choices for those who want to stay invested in equities during turbulent market conditions. The following options are intriguing:
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