SSGA SPDR ETFs Monthly Chart Pack – September 2017
Attached is the September chart pack from SSGA. Below is one slide that shows monthly performance of the various equity factors in the U.S. YTD.
While this is a relatively short time period, it is a good example of why it makes sense to own more than one factor ETF. During the year, momentum (growth) performance has picked up while quality and minimum volatility have lagged on a relative basis. However, in August, we saw a spike in market volatility due mostly to geopolitical concerns.
This was the first spike that we have seen in some time. Minimum volatility held its ground with positive absolute and relative performance during the month, and importantly, acted in the way we would expect (outperforming during periods of uncertainty).
For clients that may ask why they own multiple equity ETFs (growth, quality, low volatility) this is just one simple example of how different factors balance one another out while reducing the overall risk of the portfolio.