Passively managed LVHD targets less volatile, high-yield stocks selected from the Solactive U.S. Broad Market Index. Despite its comfortable downside capture, LVHD's total returns were a mere disappointment in the past, as it was incapable of keeping pace with the market during recoveries. LVHD's portfolio has a defensive tilt, with strong quality, appealing valuation, and a high dividend yield, yet growth is a weak spot.
While the stock market has been hovering around a record level, there are valid reasons to approach the current situation with caution.