Invesco QQQ Low Volatility ETF

QQLV

Market cap $2.31M

Advisors and long-term investors know it's best to not get caught in stocks' behavior over a day or even a week. Still, it's fair to say equities were all over the place last week, likely whipsawing some jittery market participants.

Low-volatility stocks and the related ETFs enjoyed some moments in the sun earlier this year when risk assets were rattled by the White House's tariff gambit. However, volatility-reducing strategies were largely glossed over following the post-Liberation Day rebound.

Following the post-Liberation Day market slide six months ago, investors have been rewarded for taking risk and playing offense over defense. But October is serving as a reminder that it always pays to have a hedge or a buffer in a portfolio.

Earlier this year, the low volatility factor and related ETFs shined bright as investors fretted about macroeconomic data and trade tariffs. The July jobs report, which was released August 1, could reignite those fears, possibly bring funds such as the Invesco QQQ Low Volatility ETF (QQLV) back into the limelight.

Weaker July jobs data and sharp revisions fuel rate cut bets and shine a light on five defensive ETFs like QQLV.

The low vol factor and related ETFs held up their ends of the bargain during a bumpy first quarter and following “Liberation Day” turbulence. With seven months remaining in 2025, investors would do well to remember the benefits of this investing style.

U.S. stocks saw mixed performance on Thursday as investors analyzed Walmart's WMT tariff-impacted earnings and assessed fresh data on retail sales and inflation to gauge the health of the economy. Moreover, the tech sector slumped on May 15.

Of the scores of exchange traded funds that came to market last year, the Invesco QQQ Low Volatility ETF (QQLV) is one worthy of a “peacock” moment or two. When QQLV debuted last December, it was arguably impossible to forecast at that time just how well-timed the ETF would be.

Amid tariff tumult, investors are confronting a long-standing duality pertaining to financial markets. That's the short-term functioning of risk assets balanced against advice that investing for the long term often delivers strong results.

The S&P 500 slid 9% last week, and some other widely followed domestic equity gauges are now in bear market territory. So it's understandable many market participants believe there's nowhere to hide as trade tariffs take a toll on risk assets.