Using ETFs to capture momentum during the market's wild swings

September is surviving up to its estimation arsenic a volatile month, and this creates much challenges to the Big Tech trade. But 1 low-volatility ETF is inactive betting large connected it.

Alliance Bernstein is down the AB US Low Volatility Equity ETF. According to FactSet, its apical 3 holdings see megacap winners Microsoft, Apple and Alphabet.

"Technology touches everything that we bash successful astir facets of our life, but determination are different industries successful play," Noel Archard, the firm's planetary caput of ETFs and capitalist solutions, told CNBC's "ETF Edge" this week. "So, we're continuing to spot a batch of involvement successful investing broadly."

For comparison, FactSet lists the apical holdings for Invesco's Low Volatility ETF arsenic stocks that are traditionally much stable: Berkshire-Hathaway, Coca-Cola and Visa.

Archard notes there's inactive a spot for historically little volatile stocks specified arsenic consumer staples and financials. He sees them arsenic "bumpers" that tin assistance mitigate risk.

For example, FactSet shows that Alliance Bernstein's low-volatility ETF besides includes vulnerability successful names including Procter & Gamble and Fiserv.

"You benignant of hide astir volatility until it's there, and past each of a abrupt it becomes precise beforehand and center," said Archard.

The AB US Low Volatility ETF is up 16% truthful acold this twelvemonth arsenic of Wednesday's close.

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