This article highlights how increasing numbers of alternative , smart beta index - based ETFs are becoming popular investment tools for gaining market confidence , without being exposed to potential risks associated with traditional market capitalisation - weighted stocks . Additionally , these ETFs may also enhance the benchmark index while reducing risk through added diversification ; for example , a popular index during more volatile market conditions focuses on the 100 least volatile stocks on the S&P index .
This article highlights how increasing numbers of alternative, smart beta index-based ETFs are becoming popular investment tools for gaining market exposure, without being exposed to potential risks associated with traditional market capitalisation-weighted indices. Additionally, these ETFs may also outperform the benchmark index while reducing risk through added diversification; for example, a popular ETF during more volatile market conditions focuses on the 100 least volatile stocks on the S&P 500.