Smart ETFs

As explained in the previous post, in general, an ETF tracks a simple index such as S&P 500. But also they can include some algorithm trying to achieve better returns or to reduce the risk. Here we want to show you some interesting ones:

LRGF, iShares Edge MSCI Multifactor USA. From investorplace.com: the ETF screens for stocks that meet four of the biggest determinates for success. These include financially healthy firms, stocks that are inexpensive, smaller companies and trending stocks. Better known as quality, value, size and momentum. Expense ratio: 0.2%.

SPLV, Invesco S&P 500 Low Volatility. From investorplace.com: SPLV tracks an index of stocks that exhibit the lowest realized volatility over the past 12 months or the lowest magnitude of price fluctuations over time. By betting on the least-volatile stocks, investors are able to capture plenty of upside, while limiting the drawdowns. Expense ratio: 0.25%.

ALFA, AlphaClone Alternative Alpha. From etf.com: ALFA tracks an index that aims to deliver outperformance by mimicking hedge funds' positions in US equities. The index relies on lagged published holdings to determine long exposure. Expense ratio: 0.69%.

MNA, IQ Merger Arbitrage. From etfdb.com: this ETF offers exposure to a merger arbitrage strategy that has been popular among hedge funds and other sophisticated investors for decades. By seeking to capture the gap between the ultimate transaction price and current price levels for takeover targets, MNA is capable of delivering relatively stable returns that should exhibit low correlations to asset classes such as stocks and bonds. Expense ratio: 0.78%.