Do my eyes deceive me? The overlap between Low Vol ETFs makes for some terrific confusion, and the “why” money flows have been high in Low Vol strategies is highlighted by the fact that the Innovator Lunt Low Vol/High Beta Tactical ETF (LVHB) switched into Low Vol gear. Perhaps this is a reflection of the fall out from December. Owners of tactical strategies can often get whipsawed.
However, we though that it is interesting that $LVHB follows the $SPLV strategy and therefore has an overlap of 99% and only 47% overlap with $USMV..
My point – flows can be deceiving indicators and do not always reflect consensus let alone have a consistent definition.
Structure matters and these three ETFs have very different strategies.
What is most important to note about SPLV is the fact that it holds a 24% weighting in Utilities and 19% weighting in Real Estate (an area that has been inflated by ETF ownership)
