FLFR VS CFA: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have brought a new dimension to the investment landscape, providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: FLFR (Fidelity Low Volatility Factor ETF) and CFA (VictoryShares US 500 Volatility Weighted Index ETF). We'll delve into their respective tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure profiles.
FLFR VS CFA: Overview
FLFR and CFA are two ETFs that adopt different strategies to harness the potential of low volatility factor investing. While FLFR, managed by Fidelity, focuses on low volatility stocks within the U.S. market, CFA, offered by Victory Capital, aims to capture the performance of large-cap U.S. stocks using a volatility-weighted approach. These varying methodologies lead to distinctive risk and return profiles, which we will explore in detail.
FLFR VS CFA: Sectors and Top Holdings
FLFR's investment strategy revolves around constructing a portfolio of low-volatility stocks across sectors such as technology, healthcare, and consumer goods. On the other hand, CFA's approach involves selecting and weighting stocks from the S&P 500 Index based on their volatility, resulting in a unique sector distribution. Understanding the sectors and top holdings of these ETFs can help investors align their investments with specific market exposures.
FLFR overlap FLFR VS CFA: A Comprehensive Comparison of ETFs
FLFR VS CFA: Capitalization and Investment Strategy
FLFR boasts a substantial Asset Under Management (AUM), indicating its popularity among investors who seek reduced market risk through low volatility stocks. CFA's investment strategy emphasizes companies with lower historical price fluctuations, potentially offering a less volatile path to market returns. The difference in capitalization and investment strategy between the two ETFs gives rise to different risk and return dynamics, requiring careful consideration from investors.
FLFR VS CFA: Tracking and Exposure
FLFR tracks an index that screens for low volatility stocks while maintaining sector diversity, aiming to mitigate the impact of market downturns. CFA, however, takes a unique approach by weighting stocks based on their historical volatility, potentially leading to reduced exposure to more volatile stocks. Understanding the tracking mechanisms and exposure characteristics is essential for investors to evaluate how these ETFs fit into their overall investment strategy.
Conclusion
FLFR and CFA represent two distinct avenues for investors to access the benefits of low volatility investing within the U.S. equity market. To explore in-depth insights into holdings, correlations, overlaps, and other crucial information, investors can turn to ETF insider—an intuitive app that offers comprehensive details about these financial instruments and more.
Disclaimer: This article does not provide any investment advisory services.
Sources:
FLFR ETF issuer
FLFR ETF official page
FLFR quote and analysis
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