SELV Profile
The SEI Large Cap Low Volatility Factor ETF aims to offer investors exposure to large-cap U.S. companies characterized by lower volatility relative to their peers. The fund is designed to invest at least 80% of its net assets, including any borrowings for investment purposes, in equity and equity-related securities. This includes a range of instruments such as common stocks, convertible bonds, convertible preferred stock, depositary receipts, warrants, and rights issued by large-cap U.S. companies.
The ETF targets companies with lower volatility metrics, focusing on those that demonstrate stable price movements and lower risk compared to the broader market. This investment strategy is grounded in the principle that lower volatility stocks can provide more stable returns and reduced risk during periods of market turbulence. The fund seeks to capitalize on this strategy by selecting large-cap stocks that exhibit lower historical price volatility, with the goal of mitigating the impact of market fluctuations on the investment portfolio.
In constructing its portfolio, the SEI Large Cap Low Volatility Factor ETF employs a systematic approach to identify and invest in large-cap companies with lower volatility characteristics. This involves evaluating a range of financial metrics and stock price behaviors to ensure that selected securities align with the fund’s low volatility criteria. By emphasizing lower risk stocks, the ETF aims to offer investors a smoother investment experience, potentially enhancing risk-adjusted returns over time.
Investing in low volatility stocks can be particularly advantageous during periods of market uncertainty or downturns, as these stocks tend to be less sensitive to market swings. However, it is important for investors to be aware that while low volatility stocks may offer reduced risk, they might also experience lower returns compared to higher volatility counterparts during strong bull markets. The SEI Large Cap Low Volatility Factor ETF provides a strategic avenue for investors seeking stability and lower risk within the large-cap equity space.
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