The markets have been very volatile in recent months and for investors, that can be nothing more than a headache. It can be very unnerving seeing your investments bounce back and forth between gains and losses.
However, one way that investors can protect themselves is by investing in stocks that don’t have a lot of volatility and that offer much more stable returns.
The JPMorgan U.S. Minimum Volatility ETF (NYSEArca:JMIN) is a great option for risk-averse investors because it focuses on those type of stocks.
With 221 holdings, the fund is well-diversified and even its largest holding is no more than 0.64% of the total net assets. Investors won’t have to worry about a bad earnings result for a major holding weighing down the ETF.
An example of some of the larger investments it owns includes Walmart Inc (NYSE:WMT) and AT&T (NYSE:T).
The largest sector in the portfolio is consumer goods at 18.9%, followed by utilities at 17.2% and health care at 16.3%. Those are all fairly stable sectors that should continue to perform well in both good times and bad.
So far this year, the ETF has risen around 20% in value. And in addition to providing investors with some strong returns, it has also paid a dividend of more than 1.7%.
Overall, the ETF is a great option for investors that just want to buy and forget, and not worry about the market’s wild fluctuations. With some solid stocks in its portfolio, the fund is a good bet to rise over the long term.
