Volatility-hedged equity ETFs are a type of exchange-traded fund (ETF) that use various techniques to hedge against volatility in the stock market. Volatility is a measure of the fluctuation in the price of a security or index, and hedging refers to taking steps to reduce the risk of an investment.

Volatility-hedged equity ETFs can hedge against market volatility by using options. For example, an ETF may use options contracts to buy or sell a stock index at a fixed price at a future date, which can provide a hedge against a decline in the stock market.

Volatility-hedged equity ETFs can provide investors with a way to gain exposure to the stock market while reducing the risk of significant price fluctuations. However, it's important to note that these ETFs may not be able to eliminate market risk entirely, and investors should also be aware of the potential for increased costs associated with hedging strategies. Additionally, investors should conduct their research and due diligence before investing in these funds.

Volatility Hedged Equity

NYSEArca

FLLV

Franklin International Low Volatility High Dividend Index ETF seeks to track the Franklin International Low Volatility High Dividend Hedged Index-NR, which includes developed-market equities outside the United States with relatively high yield and low price and earnings volatility.

Cboe US

LVHI

NasdaqGM

VSMV

The WEBs QQQ Defined Volatility ETF seeks to track the Syntax Defined Volatility Triple Qs Index, using QQQ exposure, swaps, and cash positions to target an annualized volatility level of about 22%.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
FLLV	Franklin Liberty U.S. Low Volatility ETF	3.19	0.83	—	92
LVHI	Franklin International Low Volatility High Dividen...	3.14	1.42	—	90
VSMV	VictoryShares US Multi-Factor Minimum Volatility E...	2.65	0.87	—	86
DVQQ	WEBs QQQ Defined Volatility ETF	2.13	—	—	58
QLV	FlexShares US Quality Low Volatility Index Fund	1.87	0.85	—	57

Top Volatility Hedged Equity ETFs by Sharpe Ratio

Top Volatility Hedged Equity ETFs by Sharpe Ratio