From Nasdaq:

The U.S. stock market has been chaotic as of late, with the S&P 500 Index and the Nasdaq Composite Index both experiencing major declines. Overstretched valuations and uncertainty about when the Fed will cut rates have left many investors looking for diversified strategies to protect their portfolios.

As a result, low-risk ETFs are becoming increasingly popular choices, such as the Invesco S&P 500 High Dividend Low Volatility ETF, Simplify Tail Risk Strategy ETF, Cambria Tail Risk ETF, and AGF U.S. Market Neutral Anti-Beta Fund.

The 10-year Treasury yields have climbed above 4%, and the latest Fed minutes indicate a more restrained approach to rate cuts than expected. This reflects growing concerns about potential risks from an overly restrictive monetary policy.

On top of this, there’s been disappointing manufacturing data. The U.S. manufacturing sector has further declined, with the latest PMI data from S&P Global showing contraction.

Shares of iPhone maker Apple have plummeted to an eight-week low after being downgraded by two analysts due to concerns about iPhone demand. Meanwhile, semiconductor stocks have also seen rough trading after ASML Holdings announced restrictions on shipments to China.

Among the ETFs in focus is the Invesco S&P 500 High Dividend Low Volatility ETF. This ETF tracks 50 stocks on the S&P 500 Index with a history of high dividend yields and low volatility, offering an excellent way to gain exposure to diverse sectors.

The Simplify Tail Risk Strategy ETF, Cambria Tail Risk ETF, and AGF U.S. Market Neutral Anti-Beta Fund are also compelling choices for investors looking to minimize downside risk in increasingly volatile markets. These ETFs offer different strategies designed to protect against severe equity market sell-offs, while still providing potential for income and capital appreciation.

Overall, these low-risk ETFs are becoming increasingly popular as investors seek stability and security in the midst of market turmoil. Research reports on these and other ETFs, as well as top news and analysis, can be found at Zacks Investment Research.



Read more: Low-Risk ETFs to Consider Amid the Market Turmoil