Thanks a lot for these details. One more question. What does risk category tells us. I saw the risk category for stocks as well but was not sure how to understand/evaluate it. Is there ETFs in green or with very low risk? Also, I thought ETFs are much lower risks that individual stocks because they do not depend on one or two companies/tickers. What are the reasons to show them in yellow or even red for VWRD above?
Their risk metric, here, is the 1 Year volatility. The greater the annual volatility, the riskier the ETF. They probably have a basket of ETF and 18% volatility is on the riskier side of the spectrum. Some ETF have very low volatility such as those tracking yields, bonds & such. Looks like the SPY has a 12 Month realized volatility of 24% VHYD and VWRD are then less risky than the SPY Meaning they have smaller swings % wise. ETF are generally less risky than stocks. Even if we can find less volatile stocks than the ETF itself, Since the ETF is a basket of stocks then it will average everything out. Obviously some constituents are going to be above or below the average.
Great explanation, thanks a lot. Last question - you mention above ETF tracking bonds. I think it is time to buy some bond ETFs. Can you recommend any non- US domiciled ETFs for bonds?