Low-volatility funds got volatile in stock rout

NEW YORK: Friday’s US stock rout, the worst since Britain voted to leave the European Union, spared few investors, particularly not owners of exchange-traded funds designed to minimise turbulence.

Low-beta exchange-traded funds (ETFs) plunged even more than the broader market, extending a move that began two days earlier. The PowerShares S&P 500 Low Volatility portfolio slid almost 3% on Friday and the iShares Edge MSCI Min Vol USA ETF fell 2.7%, the worst daily losses in more than a year. The S&P 500 dropped 2.5%.