Amid confusion about the future trajectory of the war in Iran, the possibility of a continued ceasefire, and the potential implications for the price of oil—and the market in general—it's understandable that many investors may be seeking stability. During a volatile time, it may make sense to turn to exchange-traded funds (ETFs) that are designed specifically to have lower volatility.
Under normal circumstances, and certainly during a bull run, investors might generally shy away from low-volatility ETFs except as a defensive play. After all, these funds are designed to not move much despite what may be going on in the market—and when there are opportunities for gains, it means that these ETFs may be left behind. But they can shine when turbulence threatens to wipe away returns built over an extended period.
