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SPLV: Can This Low-Volatility ETF Outperform In A Recession? - Seeking Alpha

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The Invesco S&P 500 Low Volatility ETF (NYSEARCA:SPLV) will likely provide some downside protection when the next recession hits, but not enough to justify an investment today. The reason is that SPLV is 24% Utilities and holds too many low-profitable stocks that don't do well in market downturns. USMV, a cheaper alternative with a slightly higher five-year beta, is the better pick. It's outperformed SPLV in 9/12 years since 2012, is much better diversified at the sector and industry levels, and has more robust sales and earnings growth rates when downside protection isn't needed. I don't recommend readers buy SPLV, and I look forward to explaining why in further detail below.

seekingalpha.com     May 09, 2023