Market Volatility Rises, Low-Volatility ETFs Become Investment Favorites
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: Fool
- Increased Market Volatility: In 2023, the CBOE Volatility Index (VIX) surged from 14 to nearly 30, currently stabilizing around 24, indicating heightened uncertainty and fear in the market, prompting investors to seek ways to reduce portfolio volatility.
- Recommended Low-Volatility ETF: The iShares MSCI USA Min Vol Factor ETF (USMV) holds 170 low-volatility stocks with a management fee of only 0.15%, primarily concentrated in defensive sectors like technology, financial services, and healthcare, making it suitable for investors seeking stable returns.
- Alternative Investment Option: The Invesco S&P 500 Low Volatility ETF (SPLV) consists of about 100 S&P 500 securities with the lowest realized volatility over the past 12 months, carrying a management fee of 0.25%, focusing on defensive sectors such as utilities and real estate, ideal for those looking to avoid high volatility risks.
- Performance Comparison: Year-to-date, SPLV has risen approximately 1.4%, while USMV has declined about 2.1%, contrasting with the broader S&P 500's drop of around 4.2%, highlighting the relative resilience of low-volatility ETFs in turbulent markets.
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Analyst Views on SO
Wall Street analysts forecast SO stock price to fall
17 Analyst Rating
4 Buy
11 Hold
2 Sell
Hold
Current: 95.550
Low
45.00
Averages
92.34
High
109.00
Current: 95.550
Low
45.00
Averages
92.34
High
109.00
About SO
The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling “units” that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
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- Increased Market Volatility: In 2023, the CBOE Volatility Index (VIX) surged from 14 to nearly 30, currently stabilizing around 24, indicating heightened uncertainty and fear in the market, prompting investors to seek ways to reduce portfolio volatility.
- Recommended Low-Volatility ETF: The iShares MSCI USA Min Vol Factor ETF (USMV) holds 170 low-volatility stocks with a management fee of only 0.15%, primarily concentrated in defensive sectors like technology, financial services, and healthcare, making it suitable for investors seeking stable returns.
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See More
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- Price Range Analysis: The XLU ETF has a 52-week low of $35.51 and a high of $47.80, with the latest trade at $46.16, indicating that the ETF is currently near its high point, reflecting market confidence in its stability.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide investors with valuable insights for technical analysis, helping to assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling “units” that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), allowing assessment of their impact on underlying assets and overall market sentiment.
See More
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- Historic Contract Signing: Georgia Power has finalized 16 new contracts totaling 70 megawatts of third-party solar projects, marking the largest distributed generation procurement in the company's history, aimed at meeting the growing electricity demand.
- Renewable Energy Expansion: In 2024, Georgia Power will add an additional 41 megawatts of solar generation, bringing the total new solar resources to over 110 megawatts, further solidifying its leadership in the renewable energy sector.
- Long-term Strategic Planning: The company plans to seek over 100 megawatts of additional distributed solar generation in the next two years, with two upcoming RFPs targeting 50 megawatts each to support its goal of reaching 10,000 megawatts of renewable resources by 2032.
- Customer Benefits: By collaborating with solar developers, Georgia Power enhances the reliability of its energy infrastructure while ensuring millions of Georgians have access to clean, reliable, and affordable energy, reflecting the company's commitment to sustainability.
See More
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- Historic Contract Signing: Georgia Power has signed contracts totaling 70 megawatts with 16 third-party solar developers, marking the largest distributed generation solar procurement in the company's history, which is expected to significantly enhance its market position in renewable energy.
- Renewable Energy Growth: The signing of these contracts follows the approval of the 2022 Integrated Resource Plan and builds on 41 megawatts completed in 2024, resulting in over 110 megawatts of new solar capacity to meet Georgia's increasing electricity demand.
- Long-Term Strategic Planning: Georgia Power plans to seek an additional 100+ megawatts of distributed solar generation over the next two years, supporting its goal to expand its renewable resource portfolio to 10,000 megawatts by 2032, further solidifying its leadership in the clean energy market.
- Customer Benefits: By collaborating with solar developers, Georgia Power not only enhances access to renewable energy but also ensures reliability and affordability of electricity, providing clean and reliable energy solutions for millions of Georgians.
See More
Southern Company to Release Q1 2026 Earnings on April 30
- Earnings Release Schedule: Southern Company plans to release its Q1 2026 earnings at 7:30 a.m. ET on April 30, 2026, reflecting the company's commitment to transparency and investor communication.
- Analyst Conference Call: Chairman and CEO Christopher C. Womack and CFO David P. Poroch will hold a conference call at 1 p.m. ET on the same day to discuss earnings details, aiming to enhance analysts' understanding of the company's financial health.
- Webcast Availability: Investors, media, and the public can listen to the live webcast of the conference call via the company’s website, indicating Southern Company’s dedication to improving information accessibility and transparency.
- Company Background: As a leading energy provider serving 9 million customers, Southern Company operates electric and natural gas distribution businesses, showcasing its extensive influence and diversified operations in the energy market.
See More
Georgia Power Plans to Pursue Over 100 MW of Additional Solar Distributed Generation in the Next Two Years
Georgia Power's Solar Expansion: Georgia Power plans to add over 100 megawatts of solar energy capacity in the next two years.
Renewable Energy Commitment: This initiative is part of the company's broader commitment to increase renewable energy sources and reduce reliance on fossil fuels.
See More
Market Volatility Rises, Low-Volatility ETFs Become Investment Favorites
- Increased Market Volatility: In 2023, the CBOE Volatility Index (VIX) surged from 14 to nearly 30, currently stabilizing around 24, indicating heightened uncertainty and fear in the market, prompting investors to seek ways to reduce portfolio volatility.
- Recommended Low-Volatility ETF: The iShares MSCI USA Min Vol Factor ETF (USMV) holds 170 low-volatility stocks with a management fee of only 0.15%, primarily concentrated in defensive sectors like technology, financial services, and healthcare, making it suitable for investors seeking stable returns.
- Alternative Investment Option: The Invesco S&P 500 Low Volatility ETF (SPLV) consists of about 100 S&P 500 securities with the lowest realized volatility over the past 12 months, carrying a management fee of 0.25%, focusing on defensive sectors such as utilities and real estate, ideal for those looking to avoid high volatility risks.
- Performance Comparison: Year-to-date, SPLV has risen approximately 1.4%, while USMV has declined about 2.1%, contrasting with the broader S&P 500's drop of around 4.2%, highlighting the relative resilience of low-volatility ETFs in turbulent markets.
See More
