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Analyst Urges Shift to Low-Volatility ETFs Amid Market Anxieties

  //stocks-investing.news-articles.net/content/202 .. o-low-volatility-etfs-amid-market-anxieties.html
  Published in Stocks and Investing on Wednesday, February 18th 2026 at 15:05 GMT by The Globe and Mail
      Locales: CANADA, UNITED STATES

Wednesday, February 18th, 2026 - As economic headwinds gather and market anxieties rise, a leading financial analyst is advocating for a shift towards low-volatility Exchange Traded Funds (ETFs) as a strategy to protect and grow portfolios. Betsey Clark, a Globe and Mail analyst, has garnered significant attention - and a strong track record - with her ETF recommendations over the past year, consistently outperforming key benchmarks. Now, she's doubling down on that success with a new suite of recommendations geared towards investors seeking stability without sacrificing potential returns.

"We're entering a period demanding cautious optimism," Clark explains. "The confluence of geopolitical instability, persistent inflation in some sectors, and the potential for a slowdown in global growth necessitate a more defensive approach. These ETFs offer a compelling way to tap into factors historically associated with strong returns, while simultaneously buffering against the worst of the inevitable market fluctuations."

Clark's recent successes have positioned her as a trusted voice in the ETF space. Her methodology focuses on identifying ETFs that emphasize specific investment 'factors' - quantifiable characteristics that have been shown to drive long-term performance. She's not suggesting a complete abandonment of growth stocks, but rather a strategic allocation towards factors that historically perform well when market conditions become challenging. This isn't about chasing the highest returns, but about preserving capital while still participating in market gains.

Diving into the Recommendations:

Clark's current recommendations represent a diversified approach to low-volatility investing, spanning different asset classes and investment strategies. Here's a detailed look:

• XEQ - iShares Canadian ESG Leaders ETF: Environmental, Social, and Governance (ESG) investing has surged in popularity, driven by a growing awareness of the importance of sustainable and responsible business practices. XEQ provides exposure to Canadian companies leading the way in ESG performance. Clark believes this ETF isn't just about ethical investing; it's also about identifying companies that are better positioned for long-term success. "Companies with strong ESG practices tend to be more resilient and better managed, which translates into lower risk and potentially higher returns," she notes. The increased demand for ESG investments has also contributed to positive performance in this sector.

• QAL - iShares MSCI Canada Quality Index ETF: In times of economic uncertainty, the quality of a company's fundamentals becomes paramount. QAL focuses on Canadian companies exhibiting strong financial health - high profitability, stable earnings, and low debt levels. Clark explains, "Quality stocks are the bedrock of a defensive portfolio. They're less likely to be dramatically impacted by market downturns because they're built on solid foundations." The ETF offers a buffer against volatility by prioritizing companies with proven business models.

• MO - iShares MSCI Canada Momentum Index ETF: Momentum investing, which focuses on stocks that have recently outperformed, can be a double-edged sword. While it can generate significant gains, it also carries a higher degree of risk. Clark's recommendation of MO acknowledges this volatility but emphasizes the ETF's structure as a mitigating factor. "By diversifying across a broad range of momentum stocks, this ETF reduces the risk associated with any single high-flying stock. It captures the benefits of momentum while dampening the swings."

• CDY - iShares Core Dividend Growth ETF: Dividend-paying stocks are often considered 'safe haven' assets, providing a steady stream of income even during market downturns. CDY focuses specifically on companies that are consistently increasing their dividend payouts, signaling financial strength and a commitment to shareholder returns. "Dividend growth is a key indicator of a company's underlying health and its ability to generate sustainable profits," Clark states. This ETF offers a reliable income stream and potential for capital appreciation.

• VMO - Vanguard FTSE Global ex-Canada Equity ETF: Diversification is a cornerstone of risk management. VMO provides exposure to global equities outside of Canada, helping investors reduce their reliance on the Canadian economy. "Over-concentration in a single market can expose your portfolio to unnecessary risk," Clark warns. "VMO allows you to broaden your horizons and capture growth opportunities in other parts of the world." This international diversification is particularly crucial in a globalized economy.

A Note of Caution:

Clark is quick to emphasize that these are merely recommendations, not guarantees of success. "Investors must conduct their own thorough research and consider their individual risk tolerance, financial goals, and investment time horizon before making any investment decisions," she stresses. She also reiterates the standard disclaimer: past performance is not indicative of future results. Market conditions are constantly evolving, and even the most well-researched ETFs can experience periods of underperformance.

However, in a market increasingly characterized by uncertainty, Clark's focus on low-volatility ETFs offers a pragmatic and potentially rewarding approach for investors seeking to navigate the challenges ahead.