The new high volume high list today highlighted that the Powershares S&P Low Volatility ETF (ticker SPLV, more here) was making a new highs, on volume. This is a fairly new ETF and only has history back to mid-2011. The index and ETF track the performance of the 100 names in the S&P 500 with the lowest price volatility. Although short in age, the index's existence got me thinking, was their a high volatility index/ETF and if so would the relative price of the two provide any insights into the broader equity market?
Well, there is a S&P 500 High Beta ETF (ticker SPHB more here), which tracks the 100 names that are most sensitive to changes in the underlying index. Turning to the relative price, the age of each ETF is just too short to draw any definitive conclusions (not that I cannot recreate proxies for each). However, the graph below does not rule out the an importance in watching the relative price of the SPHB to SPLV. Both ETF's are probably worth watching.
Well, there is a S&P 500 High Beta ETF (ticker SPHB more here), which tracks the 100 names that are most sensitive to changes in the underlying index. Turning to the relative price, the age of each ETF is just too short to draw any definitive conclusions (not that I cannot recreate proxies for each). However, the graph below does not rule out the an importance in watching the relative price of the SPHB to SPLV. Both ETF's are probably worth watching.
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