Diversifying your investment portfolio is a key strategy to lower volatility and potentially increase returns, especially during times of market turbulence. At Extreme Investor Network, we understand the importance of exploring different investment options to protect your capital and maximize your gains.
One popular choice for investors seeking to minimize risk is low volatility funds. These funds, such as BlackRock’s iShares MSCI USA Min Vol Factor ETF (USMV), are designed to invest in stocks with low volatility and low correlation to other stocks. This strategy aims to create a more stable portfolio that can weather market ups and downs.
However, it’s essential to note that while low volatility funds may outperform during market downturns, they may underperform when the market is rallying. At Extreme Investor Network, we emphasize the importance of long-term risk-adjusted returns rather than short-term gains.
Another option for investors looking to navigate volatile markets is income funds that use options like call writing to generate yield. JPMorgan Asset Management offers Equity Premium Income ETF (JEPI) and Nasdaq Equity Premium Income ETF (JEPQ), which have shown their defensive strengths during market rotations and upticks in volatility.
In addition to traditional stocks and bonds, alternative asset classes like gold and preferred stock funds can provide further diversification and potentially lower volatility. Gold, as represented by the SPDR S & P Gold Shares fund (GLD), has performed well recently, outpacing the S & P 500 in the third quarter.
Preferred stock funds, such as iShares Preferred & Income Securities ETF (PFF) and Goldman’s Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF), offer a hybrid between stocks and bonds that can help dampen volatility. These securities may benefit from a changing interest rate environment, making them a valuable addition to a well-rounded investment portfolio.
At Extreme Investor Network, we believe in empowering investors with unique and valuable insights to make informed decisions about their investments. By exploring a diverse range of investment options, you can build a resilient portfolio that is prepared for whatever the market may bring. Join our community of extreme investors and take your investment strategy to the next level.