Low-volatility ETF outperforms S&P 500 in 2025

In 2025, a low volatility exchange-traded fund (ETF) has gained attention by outperforming the S&P 500. The Invesco S&P 500 Low Volatility ETF (SPLV) has risen nearly 5% this year, while the S&P 500 has fallen about 3.9%. The SPLV focuses on 100 low-volatility stocks from the S&P 500. Its top holdings include Berkshire Hathaway and Mastercard. Over the past year, the SPLV has gained almost 13%, compared to 9% for the broader market. In contrast, Wall Street is adjusting to increased market volatility, which began with trade tariffs introduced by former President Donald Trump. The CBOE Volatility Index (VIX), which measures market fear, has gone up by nearly 18% in 2025, and 4% in March alone. Despite these fluctuations, market analysts note that current volatility levels are not as extreme as in past corrections. Joseph Cusick from Calamos Research pointed out that the VIX's behavior during recent market pullbacks indicates a lower level of panic among investors. On Wednesday, stock prices rose as investors awaited the Federal Reserve's decision on interest rates. Market participants are particularly interested in comments from Fed Chair Jerome Powell to gauge the economic impact of ongoing trade tensions.