iShares Edge MSCI World Minimum Volatility UCITS (MVOL)

Stock Requests 📈
1
2

This ETF is a must as the volatility in 2020 is huge. There is no ETF on Freetrade targeting low volatility, would be so useful and necessary.

1 Like
3

I’m of the opinion - feel free to challenge it - That ETFs are for the long haul 15+ years, over that period of time volatility is your friend (because you can be volatile up and down,) and by backing the world historically there’s more up then down.

With that in mind, why should I be worried about volatility in 2020 when there’s 14+ more years ahead?

The only use case in my head is for those coming to the end of their investment life or approaching retirement, looking for some exposure to the world but trying to minimise losses (probably alongside bonds?).

4

Super beta ETF against volatility.

5

Some people just prefer the changes in their portfolios to be lower and so would prefer lower volatility. You cannot anticipate when you would need your investments back and so this method is safer.

1 Like
6

Also increased volatility does not mean superior returns, there is limited correlation.

7

I’d be interested in seeing your source for this so I can read up?

Screenshot_20200206-074044__01
Screenshot_20200206-074044__011080×1149 181 KB

I’m pretty certain PensionCraft uses the Vanguard version of this and states that it has historically lower returns in his portfolio ISA video. Think it’s this one, can’t be certain though as rushing about this morn:

8

Volatility is important is correctly harnessed. However, the average investor who buys and holds is not really interested in volatility but overall returns. Why invest in a volatile security when it does not guarantee you a good return?

9

ETFs are not designed for the long run - despite you can -, but actually for being traded intra day. So just the opposite.
Low beta with the S&P 500 does not mean not growing, it means not being correlated with this benchmark.

10

I think you have misunderstood how ETFs are used. The mechanics behind them involve constant intra day trading to manage the change in baskets but most ETFs are bought for the long term. Obviously 3* ETFs etc. are designed for short term trading etc.

11

MVOL please, in my opinion Freetrade needs a low volatility ETF. It is UCITS.

12

I’d be interested in MINV (traded in GBP as I understand)

13

Agreed I think MINV would be better so we don’t get hit with the FX fee. I think we really need a minimum volatility fund on Freetrade.

There is also a suggestion for the Vanguard minimum volatility ETF which has lower costs, but seems to be much smaller: